Maryland Auto Insurance: Understanding Minimum Coverage Limits

Driving in Maryland comes with certain financial responsibilities. To drive legally in the state, you need more than a valid driver's license. You must also carry car insurance that meets the minimum state requirements. Maryland's minimum coverage liability limits are 30/60/15, meaning drivers are required to have $30,000 in bodily injury liability per person, $60,000 per accident, and $15,000 in property damage liability. Additionally, Maryland drivers must have uninsured/underinsured motorist coverage with the same limits as their liability coverage. These requirements are in place to ensure that drivers can financially cover potential damages or injuries they may cause in an accident.

Maryland's liability insurance requirements

Maryland requires drivers to carry liability insurance that covers a minimum of $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage. This means that if you are found at fault for an accident, your insurance will cover the other party's medical bills, car repairs, and other losses up to these limits. Maryland is a "fault" state, meaning that the driver who causes a crash is responsible for the other party's injuries and accident-related losses.

In addition to liability insurance, Maryland also requires drivers to have uninsured motorist coverage with minimum limits identical to the liability requirements. This protects you and your passengers if you are hit by an uninsured or underinsured driver or if you are the victim of a hit-and-run driver.

Maryland also requires personal injury protection (PIP) coverage of at least $2,500, unless you decline it in writing. PIP covers your own medical expenses and lost income if you are injured in a crash, regardless of who is at fault.

While not required by law, you may also want to consider adding collision and comprehensive coverage to your policy. Collision coverage can help pay to repair or replace your vehicle after an accident, regardless of who was at fault. Comprehensive coverage protects against non-collision-related damages, such as theft, vandalism, or natural disasters.

Uninsured motorist coverage

Maryland law requires drivers to carry a certain amount of uninsured motorist coverage. This type of 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. The minimum requirements for uninsured motorist coverage in Maryland are:

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

It's important to note that the minimum coverage is exactly that – it may not be sufficient to cover all your expenses in the event of a serious accident. You may want to consider higher limits to protect yourself and your assets adequately. Increased uninsured motorist limits are available for an additional premium, but these limits cannot exceed your third-party liability limits.

Additionally, by law, your insurance company must lower your deductible to $250 if you are hit by an uninsured driver, even if your regular deductible is much higher. This is an important detail that insurance companies may sometimes overlook, which is why it is recommended to consult an experienced Maryland auto accident attorney to help you navigate the complex insurance and legal issues that can arise in these situations.

Personal Injury Protection (PIP)

The coverage is usually between $2,500 and $5,000, depending on the amount elected, and it is available for up to three years after the accident. Most people in Maryland have $2,500 in PIP coverage, but some policies have as much as $10,000 in PIP benefits. At Posner & Cord, they recommend getting as much PIP coverage as possible, as it is only a small increase in insurance premiums.

PIP is the only no-fault coverage available in Maryland. It is important to note that insurance companies cannot raise your rates for using your PIP coverage, and it will not affect your auto insurance rates. However, to receive PIP benefits, you must not have formally waived your PIP coverage in writing before the accident.

There is a one-year deadline from the date of the automobile accident to apply for PIP benefits. Most insurance companies have a specific form for this, and it is important to fill it out completely. Be cautious, as insurance adjusters may try to trick you by including other forms for your signature, such as forms that allow them to access your medical records directly.

PIP covers:

• Medical, dental, funeral, and nursing services
• Cost of household services
• Up to 85% of lost income

These expenses must be reasonable and related to the accident. If they are not, the insurance company may reduce the payment amount or deny benefits altogether.

Collision and comprehensive coverage

On the other hand, comprehensive coverage is for non-collision damage to your vehicle from events such as theft, fire, hail, vandalism, or weather damage. For instance, if your car is damaged by a falling tree or vandalised, comprehensive coverage will pay for the repairs. Both types of coverage are optional and not required by Maryland state law, but they are typically required if you have a car loan or lease.

The cost of collision and comprehensive coverage can be adjusted by choosing a higher or lower deductible. The deductible is the amount you pay out of pocket before the insurance company covers the rest. Typically, you can choose a deductible between $100 and $2,000. A higher deductible will result in a lower premium, and vice versa. It's important to note that some insurers may require you to buy both collision and comprehensive coverage together, rather than purchasing collision coverage separately.

When deciding whether to purchase collision and comprehensive coverage, consider the value of your car, the amount of driving you do (especially in high-traffic areas), and your current savings. If you have a high-value car or limited savings, purchasing this additional coverage can protect you from having to pay expensive repair or replacement costs out of pocket.

Penalties for driving without insurance

Driving without insurance in Maryland is a serious offense. Not only does it invite stiff penalties, but it also means that you lack financial protection if you are involved in an accident.

Maryland's Financial Responsibility Law stipulates that driving without the minimum required car insurance coverage is illegal. The state mandates that you carry a minimum of $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage per accident. Failure to maintain valid car insurance can result in hefty fines and even jail time.

The penalties for driving without insurance in Maryland vary depending on the circumstances and whether it is a first or repeat offense. Here are the possible penalties you may face:

• First-time offender penalties: For a first-time offense, you may be subject to administrative fees of $150 for the first 30 days and $7 for each additional day without insurance. Additionally, you could receive five points on your license and face up to one year in prison and a fine of up to $1,000.
• Repeat-offender penalties: If you are caught driving without insurance as a repeat offender, the penalties can be more severe. You may be charged administrative fees of $150 for the first 30 days and $7 for each day thereafter, up to a maximum of $2,500. Your license and/or vehicle registration may be suspended. You could receive an additional five points on your license and face up to two years in prison. The fine for a second offense can be as high as $2,000.
• Insurance lapse penalties: Even if you unknowingly let your insurance lapse, you may still face penalties. These include the loss of your driver's license and vehicle registration, fees of $150 for the first 30 days and $7 for each additional day (up to $2,500), and a $25 fee to restore your vehicle's registration. Your license plates may be confiscated, and you may be prohibited from registering new vehicles or renewing your suspended registration until all insurance violations are cleared.
• License suspension and revocation: Driving without insurance can result in the suspension or revocation of your driver's license. This can occur for a first-time offense, and the risk increases for repeat offenses.
• Increased insurance rates: Accumulating multiple penalties for driving without insurance will likely impact your auto insurance rates. You may be required to obtain a high-risk driver insurance plan, which can be more costly.
• Criminal record: A conviction for driving without insurance will appear on your criminal record. This information may need to be disclosed during job application processes and can affect your future opportunities.

It is important to note that these penalties are separate from any financial liabilities you may incur if you are involved in an accident while uninsured. In such cases, you can be held personally liable for any damages, and the other party can sue you directly.

Frequently asked questions