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Bill

HB 148

Private Passenger Motor Vehicle Insurance - Premium Increase - Prohibition

2025 Regular Session Introduced by Natalie Ziegler

HB 148 would restrict Maryland auto insurers from raising premiums without explicit justification and approval, aiming to protect consumers from unexplained rate increases on mandatory coverage.

Hearing 1/22 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 148

Legislative bill overview

HB 148 would prohibit insurance companies from increasing premiums on private passenger motor vehicle policies without explicit justification and approval mechanisms. The bill aims to limit what insurers can charge existing customers and requires transparency in rate-setting decisions for auto insurance in Maryland.

Why is this important

Auto insurance is a mandatory expense for drivers, making premium increases directly impact household budgets. Many consumers experience significant rate hikes with little explanation, and this bill attempts to give policyholders more control and visibility into pricing decisions that affect their ability to legally drive.

Potential points of contention

  • Insurer profitability concerns: Insurance companies may argue that restrictions on premium adjustments reduce their ability to respond to claims costs, inflation, and risk assessment, potentially leading them to exit the Maryland market or raise rates for new customers instead
  • Actuarial fairness debate: Insurers claim premiums should reflect individual risk factors (driving record, claims history, age), and restrictions could force them to charge safer drivers more to subsidize riskier drivers
  • Implementation complexity: Defining what constitutes valid justification and creating an approval process could create administrative burden and litigation, potentially slowing legitimate rate adjustments for inflation and changing risk profiles

Compiled from official sources — confirm details with the bill’s official record.

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