Maryland Auto Insurance Requirements
Maryland takes a very tough stance on mandatory auto insurance laws for both private and commercial vehicle owners. Minimum auto insurance coverage requirements in Maryland are mandated by state law and the Maryland Motor Vehicle Administration. The following minimum coverage is required on every registered vehicle, except as noted below:
(Source: Maryland Motor Vehicle Administration)
Driving without the mandatory liability insurance in Maryland can result in:
• Lose license plates and vehicle registration privileges.
• Pay uninsured motorist penalty fees for each lapse of insurance – $150 for the first 30 days, $7 for each day thereafter.
• Pay a restoration fee of up to $25 for a vehicle’s registration.
• Be prohibited from registering any future vehicles until all insurance violations are cleared.
• Be prohibited from renewing a suspended registration until all insurance violations are cleared.
• Have license plates confiscated by an authorized tag recovery agent, once a registration suspension is in effect.
• Pay a fine of up to $1,000 and/or one year imprisonment for providing false evidence of insurance.
Subsequent offenses are classed as misdemeanors and subject to higher fines, reinstatement fees, and jail time.
The Maryland Automobile Insurance Fund is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the MAIF website.
Factors Influencing Car Insurance Premiums in Maryland
Getting a quote for cheap car insurance in Maryland requires some research and rate comparisons between different insurance companies, even though Maryland ranks just above national averages for car insurance costs. Some factors that impact insurance rates in Maryland include:
• Urban congestion in the eastern part of the state means many more vehicles on the road, more accidents, and more claims
• Maryland requires motorists carry PIP insurance
• Vehicle repair costs are generally more expensive in Maryland than elsewhere
• Overall accident fatality rates are lower than national averages
• A much higher percentage of uninsured drivers compared to national averages
• Auto insurance fraud
• Vehicle theft rates near national averages
The average auto insurance premium for residents in Maryland is $1,807 in 2011; the national average is $1,790.
Tips for Obtaining Cheap Car Insurance in Maryland
• If you’re over 55, take a state-approved defensive driving course for a policy discount
• Several insurance companies offer “pay as you drive” car insurance for low mileage drivers in Maryland
• Maintain a good driving record
• Bind multiple policies (homeowners, life, auto) with the same provider
• Maintain a good credit score
• Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
• Discuss affinity discounts with your insurance provider
• Drop comprehensive and collision insurance on older vehicles
Maryland Statistics
• Auto Theft: Maryland has one of the highest rates of vehicle theft in the country, but it has been decreasing (as is the case in most states) consistently over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:
(Source: Auto Thiefs)
• Automobile Accidents: The total vehicle miles traveled in Maryland has decreased slightly in recent years, and vehicle accident fatality rates have declined as well. Maryland is below the national average in numbers of deaths in car crashes, despite having a fairly high population concentration, particularly in the eastern part of the state.
(Source: National Highway Traffic Safety Administration)
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