Private Passenger Motor Vehicle Insurance - Fairness and Affordability Study

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1583*

HOUSE BILL 1583
C4 6lr0347

By: Chair, Judiciary Committee (By Request – Departmental – Maryland
Insurance Administration)
Introduced and read first time: February 13, 2026
Assigned to: Judiciary

A BILL ENTITLED

AN ACT concerning 1

Private Passenger Motor Vehicle Insurance – Fairness and Affordability Study 2

FOR the purpose of r equiring the Maryland Insurance Administration to establish a 3
workgroup to study how the General Assembly could establish an equitable and 4
sustainable low–cost auto program or economic relief credit program to reduce the 5
cost of private passenger automobile insurance for low–income drivers in the State; 6
and generally relating to a study regarding the cost of private passenger automobile 7
insurance. 8

Preamble 9

WHEREAS, Each person who owns a vehicle registered in the State is required to 10
purchase automobile insurance that meets statutorily defined minimum coverage limits for 11
bodily injury, property damage, and uninsured motorist coverages; and 12

WHEREAS, The cost of private passenger automobile insurance is a major public 13
concern because it is a mandatory expense affecting all drivers in the State; and 14

WHEREAS, A report on the findings of a comprehensive workgroup study of the 15
affordability of private passenger automobile insurance in the State was submitted to the 16
General Assembly on January 1, 2026, in accordance with Chapter 395 of the Acts of the 17
General Assembly of 2025; and 18

WHEREAS, The report submitted in accordance with Chapter 395 of the Acts of the 19
General Assembly of 2025 identified legislative interventions that may improve the 20
affordability of private passenger automobile insurance in the State and w arrant further 21
examination; now, therefore, 22

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That: 24
2 HOUSE BILL 1583

(a) The Maryland Insurance Administration shall establish a workgroup to study 1
how the General Assembly could establish an equitable and sus tainable low –cost auto 2
program or economic relief credit program to reduce the cost of private passenger 3
automobile insurance for low–income drivers in the State. 4

(b) The workgroup shall consist of the following members: 5

(1) one member of the Senate of Maryland who is a member of the Finance 6
Committee, appointed by the President of the Senate; 7

(2) one member of the House of Delegates who is a member of the Judiciary 8
Committee, appointed by the Speaker of the House; 9

(3) the Maryland Insurance Comm issioner, or the Commissioner’s 10
designee; 11

(4) the Executive Director of the Maryland Automobile Insurance Fund, or 12
the Executive Director’s designee; and 13

(5) the following members, appointed by the chair of the workgroup: 14

(i) one representative of an automobile insurer or automobile 15
insurer trade association; 16

(ii) one representative of a consumer advocacy group that is active 17
in the area of automobile insurance; and 18

(iii) one representative of private passenger automobile insurance 19
producers in the State. 20

(c) The Maryland Insurance Commissioner , or the Commissioner’s designee , 21
shall chair the workgroup. 22

(d) In conducting the study required under subsection (a) of this section, the 23
workgroup shall consider: 24

(1) whether the program should be open to income–eligible residents with 25
good driving records who are able to obtain coverage on the voluntary market or be limited 26
to high–risk drivers insured through the Maryland Automobile Insurance Fund; 27

(2) whether and, if so, how coverage types and coverage limits for policies 28
offered through a low–cost auto program should be constrained to control program costs; 29

(3) what the eligibility criteria should be to qualify for coverage through a 30
low–cost auto program, such as having: 31

HOUSE BILL 1583 3

(i) individual or household income below a certain threshold; 1

(ii) a good driving record or being a new driver; and 2

(iii) a vehicle valued below a certain amount; 3

(4) whether a low –cost auto program should be completely 4
self–funded via adequate rates and surcharges paid by its policyholders or a supplemental 5
funding source should be designated; 6

(5) the appropriate entity to administer a low –cost auto program or 7
economic relief credit program; and 8

(6) how an economic relief credit program should be funded. 9

(e) On or before January 1, 2027, the workgroup shall report its findings and 10
recommendations to the Governor and, in accordance with § 2 –1257 of the State 11
Government Article, the General Assembly. 12

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2026. It shall remain effective for a period of 1 year and, at the end of June 30, 2027, this 14
Act, with no further action required by the General Assembly, shall be abrogated and of no 15
further force and effect. 16