Maryland Auto Insurance now offers an enhanced installment payment plan, which will allow more Maryland drivers to take advantage of the interest-free payment plan option.
This new plan is the result of legislation passed in the 2022 legislative session and has been approved by the Maryland Insurance Administration.
The revised payment plan includes an 18% lower down payment and allows consumers to spread the cost of insurance over nine installments. Previously, Maryland Auto’s installment plan required a 20% to 25% down payment and was limited to a maximum of six or eight installments, depending on the policy premium. The larger down payment requirement has made the advance plan unattainable for some drivers and the legislator addressed this issue in the 2022 legislative session, reducing the required down payment and increasing the number of installments.
Legislation that allowed Maryland Auto to overhaul its interest-free installment plan was sponsored by Sen. Cory McCray, D-Baltimore.
These new installment billing terms will apply only to personal auto policies, and Maryland Auto plans to expand the program to commercial auto policies in early 2023. It will still be available.