Car Insurance Requirements In Maryland State

To drive legally in Maryland, you must have more than just a driver's license. If you have a loan on your car, you must have car insurance that meets the minimum state requirements, as well as any other coverage required by your lender.

Maryland As A "Fault" Car Accident State

When it comes to financial responsibility for losses resulting from a car accident, Maryland follows a traditional "fault" system: injuries, lost income, vehicle damage, and so on. This means that the person who caused the car accident is also liable for any resulting harm (in practice, the at-fault driver's insurance carrier will cover these losses up to policy limits). In Maryland, a person who suffers any type of injury or damage as a result of an automobile accident can usually proceed in one of three ways:
  • by filing a claim with his or her own insurance company, assuming the loss is covered by the policy (in this case, the injured person's insurance company will almost certainly turn around and pursue a subrogation claim against the at-fault driver's carrier)
  • by submitting a third-party claim to the at-fault driver's insurance company, or
  • by filing a personal injury lawsuit in civil court against the at-fault driver.
A claimant in a no-fault car insurance state does not usually have the same range of options. In a no-fault state, regardless of who caused the crash, you must turn to the personal injury protection coverage of your own car insurance policy for payment of medical bills and other out-of-pocket losses. Only if your injuries exceed a certain threshold can you move beyond no-fault and file a direct claim against the at-fault driver. However, Maryland drivers are not subject to no-fault insurance after an in-state accident.

Maryland Car Insurance Requirements

Liability insurance, uninsured motorist coverage, and personal injury protection are all included in a valid Maryland auto insurance policy. Following an accident, these coverages pay for the other party's medical bills and car repairs, as well as some of your own. Here's a more in-depth look:

Bodily Injury Liability Coverage

This coverage pays for the bills of the other party in the event of an accident caused by you, up to $30,000 per person and $60,000 per accident. If the other party decides to go to court, your liability insurance will cover your legal fees as well — but all costs must fall within the total 30/60 limits.

Property Damage Liability Coverage

This coverage pays up to $15,000 in property damage per accident. This may include damage to the other driver's car, any building or other property you collide with, or any personal belongings of the other party that was damaged in the accident.

Uninsured/Underinsured Motorist (UM/UIM) Liability Coverage

This coverage pays for your own medical bills and car repair costs if you are hit by a driver who does not have insurance or has insufficient coverage. As of 2012, approximately 12% of Maryland drivers lacked insurance, so this coverage could come in handy at some point. If the other driver's BI/PD limits are lower than yours and their insurer refuses to settle, you can file a claim under your UM/UIM policy for the difference between the two limits. Your insurer may request that you reject the settlement or accept it and pay the difference. The following limits are required for uninsured/underinsured motorist bodily injury and uninsured/underinsured property damage:
  • Uninsured/Underinsured Motorist Bodily Injury (UM/UIMBI)
    • Up to $30,000 per individual and $60,000 per accident
  • Uninsured/Underinsured Motorist Property Damage (UM/UIMPD)
    • $15,000; a $250 deductible for each accident for which you file a claim

Personal Injury Protection (PIP)

Personal injury protection (PIP) in Maryland, also known as no-fault insurance, covers $2,500 of your own medical expenses when you are injured in a car accident, regardless of fault. However, Maryland is not a no-fault state because it does not restrict your ability to sue the negligent driver in exchange for this coverage (as no-fault states do). PIP is required in Maryland, but you can limit the amount of coverage in writing (see table below). However, if you select limited PIP on one policy, you will be excluded from PIP coverage under any other vehicle's policy.

Additional Required Coverage

You have options in addition to the required minimum car insurance in Maryland. Most lenders will require you to carry comprehensive collision coverage if you lease a car or owe money on it. However, even if you have completed your payments, these coverages can provide excellent protection. If you have a loan on your car, your lender may require the following additional types of coverage:

Collision

Pays for damage to your car caused by a collision with another vehicle or an object.

Comprehensive

Will pay for damage to your vehicle caused by almost any cause other than collision, including theft, fire, hail, and animals.

Driving Without Insurance In Maryland

Maryland, like the majority of states, imposes fines for driving without car insurance. The fine is $150 for the first 30 days. The fine is $7 per day for each additional day. According to the Maryland Motor Vehicle Administration, the following administrative penalties (in addition to fines or any other criminal penalties imposed by a court) may be imposed:
  • Loss of vehicle registration and license plates
  • Payment of a restoration fee of up to $25 for a vehicle's registration
  • Inability to register new vehicles or renew a suspended registration until all insurance violations have been resolved, and
  • Once a registration suspension is in effect, an authorized tag recovery agent may seize license plates.
Of course, these penalties will likely pale in comparison to the financial ramifications of being in a car accident without car insurance.

Registering Your Vehicle

To register your car in Maryland, you must provide proof of car insurance. In contrast to other states, Maryland has a state inspection known as the Maryland Safety Inspection. Before you can register your vehicle, you must pass this inspection and obtain a Maryland Safety Inspection Certificate. Each county in Maryland has an authorized inspection station, so find one near you. The inspection will ensure that your vehicle meets the safety standards set by the state. Following the completion of your registration, you will most likely receive a letter requiring you to take an emissions test. It is important to note that this is separate from the safety inspection, and both must be completed by the state. To find inspection locations, contact your county.

New Resident

As a new Maryland resident, you must register your vehicle within 60 days of moving to the state. If you wait more than 60 days, you will be ineligible for a tax credit for any titling tax paid in another state, and you may be cited for out-of-state registration. Personally, you can apply for a Maryland title and registration at any MVA (Motor Vehicle Administration) full-service branch office. You can also mail the documents to the MVA's Out-of-State Title Unit, 6601 Ritchie Highway, Glen Burnie, MD 21062, or apply at an MVA licensed tag and title service. To obtain a title for your vehicle, you will typically need to submit the following forms:
  • Proof of ownership
  • Application form for Certificate of Title form (#VR-005)
  • Maryland Safety Inspection Certificate
If you've recently relocated to Maryland, notify your insurance company of your new address so that they can ensure that your auto insurance meets the requirements for Maryland registration.