Maryland Auto Insurance Laws
- Maryland requires car insurance to protect you in case of an accident.car crash image by dawn from Fotolia.com
Maryland requires motor vehicle owners to maintain automobile insurance coverage or face costly penalties if they drive without insurance. The state sets minimum limits for liability, uninsured motorists and personal injury protection. Vehicle owners must provide the state with proof of insurance within 30 days of obtaining coverage. - Liability insurance is sometimes known as bodily injury insurance because it covers medical expenses of people injured in the other car when you're the driver who caused the accident. Maryland requires minimum limits of $20,000 for the first person and $40,000 if two or more people are injured in the same accident. It also requires a minimum of $15,000 coverage to pay for damage to the other car or other property damaged in the accident.
- Personal injury protection (PIP) is sometimes known as med-pay because it covers your medical expenses or the medical expenses of people in your car. If the other driver is at-fault, it still pays these expenses up front and will seek reimbursement under that driver's policy. Some PIP policies will also cover age loss and household services if you are unable to do basic chores. Maryland requires PIP for $2,500 per person, but suggests that people who have health insurance may want to get limited PIP which does not cover anyone over age 16.
- Maryland also requires vehicle owners to carry uninsured motorist coverage which provides protection if an accident is caused by someone who does not have insurance. The state requires vehicle owners to have $20,000 in liability coverage for one person, $40,00 for two or more people, and $15,000 in property damage.
- Maryland law prescribes stiff penalties for vehicle owners or others who drive without automobile insurance. Penalties include loss of vehicle plates and registration; fines of $130 for the first 30 days of no insurance and $7 per day until insurance is purchased; a $25 fee to re-instate vehicle registration; inability to renew vehicle plates and registration until all insurance fines are paid, and a fine of up to $1,000 for giving false insurance information. Courts may impose additional penalties.
- Motor vehicle owners must provide the state with proof of insurance, which is a certificate issued by the insurance company and signed by you that indicates you have the minimum amount of insurance. The state will not accept insurance ID cards or photocopies of the certificate, though it will accept certificates faxed directly to the motor vehicle administration by your insurance company.
