In Maryland, as in most states, auto insurance is not merely a convenience – it’s a legal necessity. The state law mandates specific minimum coverage requirements to ensure financial responsibility in the event of an accident. This guide outlines these requirements and helps you navigate the nuances of car insurance in Maryland, ensuring you have the necessary coverage to drive legally and protect your financial well-being.

Do You Need Car Insurance in Maryland?

Yes. All Maryland vehicles MUST be insured at ALL times by a vehicle insurance company licensed in Maryland. As a driver, you must carry proof of insurance with you at all times while driving and present it if requested by law enforcement. Failure to have insurance can result in fines, license suspension, or even jail time.

Minimum Coverage Requirements

All vehicles driven in Maryland must have bodily injury liability insurance and uninsured motorist coverage. Personal Injury Protection (PIP) must be provided by the insurance company, but can be waived.   The waiver must be in writing.  

Liability Coverage

Liability coverage is crucial as it compensates for bodily injury to another person or property damage you may cause due to the negligent operation of a vehicle. This coverage also extends to scenarios where the accident was caused by a member of your family living with you or a person using your car with your consent. As per Maryland state law, the current minimum liability coverage limits stand at 30/60/15 – this translates to

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

This mandatory coverage ensures that there is at least a minimal amount of insurance available, to an injured victim, if you are at fault for an accident. These are the bare minimum requirements to legally operate a vehicle in Maryland. It’s important to note that these limits may not provide enough coverage in the event of a serious accident. In fact, in many situations this is not adequate coverage, and you could find that if this is the only coverage you have, that your assets are exposed.   That’s why purchasing higher coverage limits and additional types of coverage is recommended.

Uninsured and Underinsured Motorist Coverage

Uninsured and Underinsured motorist coverage is a safety net that protects you and your family from financial harm if an accident is caused by someone who doesn’t have auto insurance, doesn’t have enough auto insurance, or you or a family member is in a hit-and-run car accident. This coverage covers the costs associated with bodily injuries, like medical expenses, and pain and suffering, and property damage. As per Maryland law, the minimum uninsured/underinsured motorist coverage should mirror the liability coverage limits – that is, $30,000 per person, $60,000 per accident for bodily injury, and $15,000 for property damage. For those seeking additional safety, higher uninsured/underinsured motorist limits can be purchased for an added premium. However, do note that these limits cannot surpass your third-party liability limits. Opting for higher limits can protect you and your family, if there are serious injuries.   It is highly recommended that you purchase as much uninsured motorist coverage as you can afford. 

Personal Injury Protection (PIP)

Personal Injury Protection (PIP) is an essential coverage option for all Maryland drivers. It covers medical expenses, lost wages, and other costs resulting from injuries sustained in an accident. The minimum PIP coverage limit in Maryland is $2,500. However, drivers have the option to reject PIP coverage or purchase higher limits for added protection.

Should You Increase Your Coverage?

Absolutely. Increasing your car insurance coverage offers additional protection and peace of mind. While the minimum coverage limits meet the legal requirements, they may not fully cover the expenses arising from a severe accident. By opting for higher coverage limits and additional types of coverage, such as comprehensive and collision coverage, you’ll be better equipped to handle substantial financial burdens in the event of an accident. It’s also worth considering additional coverage options, like medical payments and roadside assistance, for more complete protection. Always assess your individual needs, risks, and budget when deciding on the appropriate coverage level.

Proof Of Car Insurance Laws

As mentioned earlier, you must carry proof of insurance with you at all times while driving and present it when requested by law enforcement. This means that you need to have either a physical or electronic copy of your car insurance card on hand. Failing to provide proof of insurance can result in penalties, including fines and license suspension.

Optional Car Insurance Coverage Available In Maryland

Optional Car Insurance Coverage Available In Maryland

Beyond the required minimum coverage, several optional insurance coverages are available in Maryland to provide additional protection. 

Comprehensive Coverage

Comprehensive coverage pays for damage to your vehicle due to non-collision events like theft, vandalism, fire, or natural disasters. Given that it isn’t mandatory, you should consider the age, condition, and value of your car when deciding whether to purchase this coverage.

Collision Coverage

Collision coverage pays for damage to your vehicle resulting from a collision, regardless of who is at fault. While optional, lenders typically require this coverage if you’re leasing or financing your vehicle.

Medical Payments Coverage

Medical payment coverage helps pay for medical expenses for you and your passengers, regardless of who is at fault. This can be especially beneficial if you frequently drive with passengers who aren’t part of your household and thus are not covered by your health insurance.

Rental Reimbursement Coverage

Rental reimbursement coverage helps pay for a rental car if your vehicle is in a repair shop following a covered accident. This coverage can provide convenience and uninterrupted mobility.

Roadside Assistance Coverage

Roadside assistance coverage includes tire changes, battery jumps, lockout services, towing, and more. This is a nice add-on for peace of mind, especially for older vehicles or those who travel frequently.

Gap Insurance

If you owe more on your car than it’s worth, gap insurance can cover the difference if your car is totaled. This is particularly beneficial for leased or financed vehicles. 

Enhanced UIM (Underinsured Motorist Coverage) 

Normally, your Underinsured Motorist Coverage gets a credit for the amount of insurance the other driver has.  For example, if you had $50,000 in UIM coverage, but the negligent driver only had $30,000 in coverage, you would only be entitled to an additional $20,000 from your insurance company.    However, if you purchase enhanced UIM then the coverage would “stack” on top of each other, and you would be entitled to $80,000 in coverage ($30,000 + $50,000).   This is very valuable coverage for you and your family, and we recommend that you ask your insurance company or agent about it, and purchase it if you can afford it.  

Penalties For Driving Without Insurance In Maryland

Driving without insurance in Maryland is considered a serious offense and can result in significant penalties. According to the Maryland Motor Vehicle Administration, For the first offense, you may face the following:

• A fine of up to $1,000
• License suspension for up to one year
• Up to 12 points on your driving record

Subsequent offenses can result in even higher fines, longer license suspensions, and possible jail time. It’s also worth noting that driving without insurance can increase your future insurance premiums and make it challenging to find coverage in the future. Therefore, it is crucial to maintain valid car insurance at all times when operating a vehicle in Maryland. 

It’s the Law

Car insurance is not just a legal requirement in Maryland but also a wise investment that protects you from potential financial hardships. From basic liability coverage to comprehensive and collision policies, each type of coverage serves a unique purpose, offering varied levels of protection. It is essential to understand these options, evaluate your individual needs and risks, and customize your policy accordingly. Remember, the goal is not just to comply with the law but to ensure peace of mind every time you hit the road.

The Law Firm of Chaikin, Sherman, Cammarata, & Siegel P.C. Is Here For You

If you have been involved in a car accident and are dealing with insurance companies, it’s important to have experienced legal professionals on your side. The Law Firm of Chaikin, Sherman, Cammarata, & Siegel P.C. has over 85 years of combined experience advocating for the rights of accident victims in Virginia and the surrounding areas. Our attorneys understand the complexities of insurance laws and can help you navigate through the process to ensure you receive the compensation you deserve. Contact us today for a free consultation to learn more about how we can help protect your rights and get you back on track after a car accident.