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Maryland Car Insurance Laws

The state of Maryland is within close vicinity to the notoriously congested areas of Baltimore and Washington, DC. The high volume of accidents each year directly contributes to the strict car insurance laws applied to motorists in Maryland.

It is always wise to know the latest changes in current regulation because the result of not keeping up with current car insurance can be a suspended license, expensive fines, and even imprisonment. To avoid these penalties, stay insured by entering your ZIP code into our FREE auto insurance comparison tool.

There is a minimum amount of liability coverage required for any operating vehicle in Maryland. A common mistake drivers make is to lack sufficient coverage in either one form of liability or another. Our FREE car insurance comparison tool can help you stay insured when you enter your ZIP code. Here is a guide to the basic requirements for car insurance in Maryland.

car insurance laws marylandMinimum Insurance Requirements

  • Bodily injury (single person) $30,000
  • Bodily injury (two or more persons) $60,000
  • Property Damage coverage $15,000
  • Uninsured Motorists policy

The above figures are the minimum required amount for insurance in the state of Maryland. It is not legal to have additional coverage for property damage for instance, but less coverage for bodily injury. Each type of liability must meet its own monetary requirement exactly as required by Maryland law.

Exclusions and Exemptions

Most drivers prefer to have a professional insurance agent handle their policy because there may be some exemptions applicable to help save money. An example of this is for other drivers that reside in the same household as the policyholder. The state of Maryland allows other members to be excluded from the policy.

If you are eligible for the exemption then the list of drivers would be clearly stated on your insurance document under the “exclusions” portion. An insurance company that has extensive experience will let you know the best suggestions for you. Don’t overpay for insurance simply because you are not aware of the laws.

Tort vs. No Fault State

Most drivers have no clue about the difference between a no fault state and a tort one. Maryland follows the latter system and when drivers get into an accident, there must be one party at fault. Reversely, a no fault state would not require that one driver or the other be responsible for damages.

In Maryland, there cannot be a mutual settlement and one side must be at fault.

The driver that is found to be the cause of the accident will have to file a claim with their insurance company and is fully liable for damages. The essential difference between a no fault state and one that follows a tort system is that drivers are urged to have higher coverage if there is possibility that they will be deemed the faulting party.

Lapse of Insurance Coverage

The state of Maryland has strict requirements and penalties if there is any lapse of insurance coverage for your vehicle. Any period of absence will contribute to a violation and drivers will be considered uninsured. The Department of Motor Vehicles will take the license plates from the vehicle and even revoke the registration.

The penalties assessed for lapse of insurance is calculated by the total time of non-coverage. Each motorist will have to cough up $25.00 to register the vehicle. In addition to the fee, the first month will incur a charge of $150.00 and each day thereafter will cost $7.00 more.

Violations and Unpaid Penalties

maryland car insurance lawsBefore any vehicle can be registered again in the state of Maryland, all previous violations must be cleared and fines must be paid accordingly. Once the suspension of the vehicle’s registration is in effect, the license plates will be taken away.

It is never recommended to produce any false document as proof of insurance because this violation can cost up to $1,000 and possible imprisonment for fraud.

Motorists that have not used their vehicles for a certain period of time may think that they are not required to either register the vehicle or have insurance coverage. The state of Maryland does not allow any uninsured or unregistered automobile to have license plates. If you do not intend to drive a vehicle then the previously issued plates must be returned to the Department of Motor Vehicles.

Insurance Premium Calculations

The cost of an insurance policy will always depend on a few different factors. Legally, insurance agents in the state of Maryland are authorized to use a driver’s credit history to calculate the rate of premiums. Some agents may even figure the premium based on how often the car is driven and the location of residence.

A few major factors that will affect the overall cost of insurance are the driver’s age, vehicle, gender, and driving record.

How to Find Legitimate and Affordable Insurance

Now that you know the importance of insuring your vehicle in accordance to Maryland law, it will be easier to shop around. It is best to avoid offline stores because companies with higher expenses will tack their costs to your price. For convenient and cheap car insurance, simply enter your ZIP code and get a FREE quote online today in our comparison tool.

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