Maryland auto insurance laws are designed to protect the public.
Maryland drivers pay average auto insurance premiums of $1,550 annually (as of 2011), landing the state in the number 17 slot for most expensive states for automobile insurance. This is significantly less than the most expensive state, Louisiana, where the average premium, as of 2011, is $2,510. To keep costs low, the state of Maryland vigorously enforces its automobile insurance laws. Vehicle owners must purchase an insurance policy that provides not only liability coverage, but uninsured motorist and personal injury protection as well.
Mandatory Auto Liability
Maryland law requires drivers to purchase an insurance policy from a company approved by the state. The policy must provide at least $30,000 in bodily injury protection for one person, $60,000 bodily injury protection for all people in an accident and $15,000 in property damage liability. Liability insurance does not cover your own medical expenses and damage to your vehicle.
Other Mandatory Coverage
By law, Maryland drivers must also carry uninsured motorist and personal injury protection (PIP). PIP pays medical expenses for you and your passengers up to $2,500. If you are already covered by hospitalization and medical insurance, you may opt for limited personal injury protection, which excludes coverage for yourself and your family members who are 16 years or age or older. Uninsured motorist insurance will cover your damages, up to your policy limits, when you are involved in an accident caused by a driver who does not have insurance. The amount of your uninsured motorist coverage cannot exceed your policy's liability limits.
Penalties for Non-Compliance
If you do not provide at least the minimum mandatory insurance, the state may penalize you. You may have your plates confiscated and lose the right to register not only the uninsured vehicle but all other vehicles you own or may purchase until previous violations have been cleared. Even break-in coverage can subject you to a fine of $150 for 30 days or less, plus an additional $7 per day for every day beyond 30. You will have to pay a $25 penalty to restore your vehicle's registration. In addition, if you falsify proof of insurance, you may be fined as much as $1,000, incarcerated for one year or both. Additional penalties and fines may be assessed in a court of law.
Proof of Insurance
The only proof of insurance the Maryland Motor Vehicle Administration will accept is the FR-19 Maryland Insurance Certification. The identification card the insurance company provides, nor the policy itself, will be accepted as a valid proof of insurance under Maryland law. You must provide your proof of insurance to the Motor Vehicle Administration if you change insurance carriers, since your new provider will not automatically notify the MVA, although your former carrier will notify the agency that your policy is no longer in effect. The MVA may also request proof of insurance if you accumulate three or more points on your driving record.
Tags: injury protection, personal injury, personal injury protection, proof insurance, your policy, auto insurance
