Don’t forget that the deadline to file your 2022 Federal and State of Maryland taxes is Tuesday, April 18. While filing your taxes can feel overwhelming, help is available. The CASH Campaign of Maryland offers free tax preparation services for eligible Marylanders. The CASH Campaign is a non-profit organization promoting economic advancement for low-income individuals and families. Families who made $60,000 or less in 2022 may be eligible for CASH Campaign’s free tax preparation services this year. For more information or to book an appointment at one of their tax preparation locations across the state, visit https://cashmd.org/free-tax-preparationresources/.
If you are expecting a tax refund, it can be tempting to spend it on something “fun,” like a vacation. While you can enjoy those things for a short time, using your tax refund to pay for necessities like car insurance can benefit you for the entire year.
Here are a few ways Maryland Auto policyholders can use tax refunds to set themselves up for success:
- Pay your insurance premiums in full. When you pay your entire insurance premium at the time of purchase, you eliminate a bill you would have to pay each month for the duration of your policy. Maryland Auto will also give you a discount of 8% on your yearly premiums when you pay in full.
- Choose our interest-free payment plan. When you select Maryland Auto’s interest-free payment plan, you pay an 18% down payment with the remaining balance spread over nine monthly installments. Using your tax refund to pay the down payment allows you to save on your overall insurance cost for the year by avoiding interest fees.
- Pay for your policy through third-party financing. If you choose to finance your policy through a premium financing company (a third-party lender), you can use your tax refund to pay a higher down payment at the time of purchase. This reduces the amount of premium spread over the monthly payments and the amount of interest paid throughout the policy term.
All three of these payment options can help you reduce your payment costs and keep your policy in force. By keeping continuous coverage, you may become eligible for discounts on future policies, helping you save money in the long-term.
You can also use your tax refund to add coverage to your existing policy. If you currently have liability-only coverage, it’s a good idea to talk to your insurance agent and find out what other coverages are available to further protect your assets.
Many Marylanders use tax refunds to purchase a new or used vehicle. Here are a few things to consider when buying a vehicle.
- Factor in all costs related to your new car. Auto insurance is required by law in Maryland. Those who drive in Maryland without the minimum required levels of insurance risk up to $2,500 in penalties per vehicle, per year! (Learn more about Maryland’s insurance requirements at: https://mymdauto.com/resources.)
- Quote before you buy. Review your current auto policy with your authorized provider. Let them know what vehicle you’re planning to purchase, and find out what the premium cost for that vehicle may be. Remember, if you are financing your vehicle, your bank or lender will require you to carry additional coverages such as comprehensive and collision until the loan is paid off. These add to your overall coverage costs.
Maryland Auto Insurance has helped Maryland residents with their insurance needs for over 50 years, regardless of credit, driving record, or driving experience. If you’ve been turned down or canceled by other insurance companies, Maryland Auto will cover you. Guaranteed.
Make sure to discuss all payment options with your insurance provider. To find an authorized Maryland Auto agent near you, visit www.mymarylandauto.com.
