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Maryland Car Insurance Requirements

Maryland Minimum Car Insurance Requirements

Like many other states, Maryland requires all drivers to carry a certain minimum liability insurance amount. However, they also require uninsured/underinsured motorist coverage and personal injury protection (PIP). The mandatory minimums for each type of insurance are outlined below.

Liability Insurance

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

Uninsured/Underinsured Motorist Coverage

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

Personal Injury Protection (PIP)

  • $2,500 per person

As a driver, you must always carry proof of insurance and be ready to present it should you be asked by law enforcement. Also, keep in mind that if you have an auto loan or lease your vehicle, your lender or leasing company could require you to carry additional insurance.

Maryland Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage offers you protection when you end up in an accident with someone lacking insurance. This can apply to someone without any liability insurance at all or someone whose insurance plan is not adequate enough to fully cover claims. Typically, when you find this type of insurance mandated by a state, it only goes towards bodily injury. Maryland is pretty unique as it also requires uninsured motorist property damage (UMPD) coverage. Both your personal injuries and property will be protected if you get into an accident with a driver lacking insurance.

Personal Injury Protection (PIP) in Maryland

Personal injury protection (PIP) coverage helps pay for the medical expenses you or your passenger(s) accumulate due to an accident. The limit for PIP coverage in Maryland is a bit on the lower end, but you do have the ability to increase it. It is also worth noting that PIP coverage will pay for your medical bills no matter who is deemed responsible for the accident.

Maryland Liability Coverage

Liability insurance is a pretty standard requirement in every state. Maryland is no exception. Every driver in the state of Maryland must carry at least the mandated minimum in order to be recognized as a legal driver. This type of insurance pays for the injuries the other drive sustains in an accident you caused. It will also extend to any property damage you cause. If the other driver is at fault, you will then be able to receive the payout from their liability insurance. These coverage limits are expressed by three numbers, with each representing its own aspect of liability insurance. In Maryland, the minimum liability insurance is 30/60/15. What each of these refers to will be explored in a later section.

Diminished Value Policy in Maryland

Maryland is one of 15 states that is a diminished value state. Being a diminished value state means that drivers are able to recover diminished value from the at-fault driver’s insurance policy. After an accident, even if your vehicle has been fully repaired, its overall value still takes a serious hit, and when you go to sell your car, you may witness these losses. If this is the case, you have the chance to try to make a diminished value claim.

In order to file such a claim in the state of Maryland, you must meet the following requirements:

  • You were not at fault for the accident
  • You can provide substantial evidence of the accident, including photos and records of repairs
  • It has been less than 3 years since the accident
  • Maryland does have uninsured motorist insurance for such a claim

Car Insurance Limits in Maryland

As previously touched on briefly, state-mandated coverage limits are the minimum amount of insurance you must carry. From an insurance company’s point of view, limits are then the maximum amount they will pay out after a claim. In the state of Maryland, if you carry the mandated liability insurance amount, your policy would be expressed as 30/60/15. What each of these numbers represents is explored below.

  • $30,000 in bodily injury per person is the maximum amount of money your insurance company will pay for injuries you cause to a single person in an accident.
  • $60,000 in bodily injury per accident is the amount of your money your insurer will pay to cover all injuries you cause in an accident.
  • $15,000 in property damage per accident refers to the amount your insurer will pay up to for damage you cause to another driver’s property in an accident.

These limit amounts are also reflected in the uninsured/underinsured motorist coverage. They also cover the same, but instead of filing a claim with the other driver’s insurance company, you would turn to your own. Remember, you also have to carry a certain minimum amount of PIP coverage. This will offer another layer of protection.

Is Maryland’s Mandatory Insurance Minimums Enough Coverage?

The state of Maryland’s insurance requirements is a bit stronger than other states. It does encompass much more, including liability and uninsured/underinsured motorist coverage. But while it may seem like a well-enough plan, it may leave you and your assets vulnerable. For example, if you only carry the mandated $2,500 in PIP coverage, you could have some bills left uncovered. The same goes for property damage coverage. $15,000 may not make much of a dent in the cost for a new vehicle should you total the other driver’s car. It is always highly recommended that when you go to buy insurance, you increase limits and utilize policy add-ons.

Driving Without Insurance in Maryland

With car insurance being mandated in the state of Maryland, deciding to drive without it comes with some heft penalties. The chart below outlines what you could be facing should you be caught driving without insurance in Maryland.

Consequences
1st Offense
2nd Offense
Fines
$1,000
$2,000
License Points
5 points
Additional 5 points
Jail Time
1 year
2 years

Letting your insurance lapse in the state of Maryland also comes with its own penalties. Even if you just happen to forget to renew your policy, you could be facing numerous fines and loss of license. In order to avoid these headaches, make sure you have the appropriate amount of coverage and that your policy is up to date.

Additional Types of Car Insurance in Maryland

While the state of Maryland mandated liability insurance, uninsured/underinsured motorist coverage, and PIP coverage, there are multiple other ways for you to strengthen your insurance policy. Outlined below are some common policy add-ons that have the chance to offer you even more protection after an accident.

  • Collision: This option covers damage to your vehicle after an accident with another car.
  • Comprehensive: Comprehensive coverage pays for damages your car sustains when it is not in use. Some non-collision damage it covers includes theft and extreme weather.
  • Gap Coverage: If your car ends up totaled before you can pay off your auto loan, gap coverage can help cover the difference between your vehicle's actual cash value and the remaining amount on the loan.
  • Roadside Assistance: If your car ends up broken down on the highway, roadside assistance can be there to help. This insurance will cover a variety of mechanical problems, such as a dead car battery or flat tire.
  • Rental Car Reimbursement: This coverage pays for the cost to rent a car when yours is out of commission for an extended period of time.

Car Insurance is Important For Any Maryland Driver

While carrying car insurance is part of the law in Maryland, you should not just purchase the minimum requirements to just be on the right side of the law. That leaves yourself and your assets vulnerable. You should look into both increasing coverage limits and expanding your plan through policy add-ons. Doing so will offer you stronger protection while also keeping you within the law. Insurance is never something you should just purchase in passing. It takes time and research in order to get it right. While it seems tedious, you'll be glad you did it.

*This product may not be available in every state, please call an agent for more information.

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