Auto Insurance In Maryland: What's The Law?

If you're driving in Maryland, you need more than just a valid driver's license. The state requires you to have car insurance that meets its minimum requirements. Maryland mandates two types of car insurance: liability insurance and uninsured motorist coverage. The minimum liability coverage includes $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage. Uninsured motorist coverage has the same minimum requirements as liability coverage.

Minimum auto insurance requirements in Maryland

To drive legally in Maryland, you need a valid driver's license and car insurance that meets the state's minimum requirements. Maryland requires two types of car insurance: liability insurance and uninsured motorist coverage.

The minimum liability coverage required in Maryland is $30,000 for bodily injury or death per person, $60,000 for bodily injury or death per accident, and $15,000 for property damage. This coverage pays for injuries, property damage, and other losses you cause in a car accident, up to the coverage limits. Liability insurance is essential because, in Maryland, the driver who is at fault for a car accident is responsible for paying for the other party's damages, including medical bills, car repairs, lost wages, and pain and suffering.

In addition to liability insurance, Maryland also requires uninsured motorist coverage. The minimum requirements for uninsured motorist coverage are the same as for liability coverage: $30,000 for bodily injury or death per person, $60,000 for bodily injury or death per accident, and $15,000 for property damage. Uninsured motorist coverage protects you and your passengers if you're hit by an uninsured or underinsured driver or if you're the victim of a hit-and-run driver.

Maryland also requires personal injury protection (PIP) coverage, unless the customer waives it in writing. PIP covers medical expenses and lost income for people injured in an accident, regardless of fault, up to $2,500. Full PIP coverage in Maryland includes you, members of your family, and non-family passengers, while limited PIP excludes benefits for family members aged 16 and over.

While Maryland requires these minimum coverages, it is important to consider your individual needs and circumstances when determining the appropriate level of auto insurance coverage. You may want to opt for higher limits or additional coverage options to ensure you are adequately protected in the event of an accident.

Liability insurance

To drive legally in Maryland, you need a valid driver's license and car insurance that meets the state's minimum requirements. Maryland requires two types of car insurance: liability insurance and uninsured motorist coverage.

• $30,000 for bodily injury or death of one person
• $60,000 for bodily injury or death of more than one person
• $15,000 for property damage

You can purchase coverage above the minimum from your insurance company or agent. Liability insurance typically covers accidents such as rear-ending another car, crashing into a mailbox, or hitting a pedestrian. It is important to note that liability coverage does not cover your own injuries or vehicle damage in a car accident.

Commercial auto insurance is required for business-owned vehicles in Maryland. It provides higher liability limits than personal auto liability insurance and may cover rented and non-owned vehicles. The minimum requirements for auto liability insurance in Maryland are the same as those mentioned above: $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $15,000 per accident for property damage.

Uninsured motorist coverage

To drive legally in Maryland, you need a valid driver's license and car insurance that meets the state's minimum requirements. Maryland requires two types of car insurance: liability insurance and uninsured motorist coverage.

• $30,000 for bodily injury or death per person
• $60,000 for bodily injury or death per accident
• $15,000 for property damage

If you're involved in an accident with an uninsured driver, you should notify law enforcement and your insurance company right away. Additionally, by law, your insurance company must lower your deductible to $250 in these cases.

Underinsured Motorist Coverage

Maryland law also requires all drivers to carry a certain amount of underinsured motorist coverage. This type of coverage comes into play when your damages in an accident exceed the policy limits of the at-fault driver. Underinsured motorist coverage can lead to a higher settlement when the at-fault driver does not have enough insurance coverage.

The underlying premise of uninsured and underinsured motorist coverage is to put the accident victim in the same position as if the at-fault driver had sufficient liability coverage. In most cases, your liability coverage mirrors your uninsured motorist coverage.

In underinsured scenarios, your insurance can bridge the gap between the at-fault driver's coverage and your own. For example, if you have an underinsured policy with $500,000 in coverage and a claim worth $400,000, but the at-fault driver only has $100,000 in coverage, their insurance company will pay their policy limit, and your insurance company will pay the remaining $300,000.

Increasing Your Coverage

It's worth considering increasing your uninsured and underinsured motorist coverage limits. Higher limits are available for an additional premium, providing you with additional protection in the event of a serious accident. However, these limits cannot exceed your third-party liability limits.

Additionally, keep in mind that Maryland does not permit the stacking of insurance coverage. This means that your total recovery from your insurance is limited to the amount of your claim, even if it is worth more than your policy limit.

In conclusion, while Maryland's minimum uninsured motorist coverage requirements provide a basic level of protection, increasing your coverage limits can offer greater financial security in the event of an accident with an uninsured or underinsured driver.

Personal Injury Protection (PIP)

To drive legally in Maryland, you need a valid driver's license and car insurance that meets the state's minimum requirements. Maryland requires two types of car insurance: liability insurance and uninsured motorist coverage.

On top of these, any car insurance policy issued in Maryland must include Personal Injury Protection (PIP) coverage, unless the customer waives it in writing. PIP is optional, no-fault auto insurance coverage. It provides immediate funds to cover lost wages and medical bills if you're injured in a motor vehicle accident, regardless of who caused the accident. The coverage is usually between $2,500 and $5,000, depending on the amount elected.

PIP benefits cover the policyholder, their family, passengers in the vehicle, the driver and passengers in another vehicle, and pedestrians injured in the accident. It pays medical bills and 85% of lost wages, and it won't make your insurance rates go up if you use it.

You may also choose limited PIP, which excludes benefits for you and family members aged 16 and over. Limited PIP makes sense if you already have good medical insurance, and it costs less.

Penalties for driving without insurance

In Maryland, driving without insurance is considered a serious offence. The penalties for driving without insurance vary depending on the circumstances, but all come with heavy fines and the possibility of jail time.

First-Time Offender Penalties

For a first offence, you could be fined up to $1,000 and face up to one year in prison. Additionally, you will receive five points on your license and be subject to administrative fees of $150 for the first 30 days and $7 for each additional day.

Repeat-Offender Penalties

If you are caught driving without insurance a second time, the penalties increase. You could be fined up to $2,000 and face up to two years in prison. The jail time and fine are maximum penalties, but at the very least, you will receive another five points on your license and a Notice of Suspension from the Maryland Motor Vehicle Administration (MVA).

Administrative Penalties

Even if you are not caught driving without insurance, allowing your insurance to lapse can result in administrative fees from the MVA. These fees are entirely independent of any criminal fines and can stack up to a maximum of $2,500 for each violation in a 12-month period. The administrative fees are calculated based on the number of days your insurance has lapsed: $150 for lapsing less than 30 days, and $7 for each additional day after that.

Other Consequences

Driving without insurance in Maryland can also result in losing your license plates and vehicle registration privileges. To get your registration back, you will need to pay a restoration fee of up to $25. You will be prohibited from registering any new vehicles or renewing a suspended registration until all insurance violations are cleared and fines are paid.

A conviction for driving without insurance will also appear on your criminal record, which can impact future job applications. The points from a conviction will stay on your license indefinitely, affecting your auto insurance rates.

Frequently asked questions