Navigating car insurance can be confusing, especially when you’re trying to understand the specific requirements of your state. If you’re a vehicle owner in Maryland, it’s crucial to be aware of the state’s mandatory car insurance laws. Maryland law requires all vehicle owners to maintain continuous auto insurance coverage from a company licensed in Maryland. This ensures that if an accident occurs, there’s financial protection for everyone involved. Let’s break down the key aspects of car insurance in Maryland to keep you informed and compliant.
Maryland’s Minimum Car Insurance Requirements
Maryland sets specific minimum liability coverage limits that every insurance policy must meet. These minimums are designed to protect you and others on the road in the event of an accident where you are at fault. The current mandatory minimums for car insurance in Maryland are:
- $30,000 for bodily injury to one person in an accident. This means your insurance will cover up to $30,000 in medical expenses and other related costs for a single person injured in an accident you caused.
- $60,000 for bodily injury to two or more people in an accident. If multiple people are injured in an accident you cause, your insurance will cover up to a total of $60,000 for all of their combined injuries. This amount is capped regardless of the number of people injured.
- $15,000 for property damage in an accident. This coverage pays for damages to another person’s property, most commonly their vehicle, if you are at fault in an accident.
These are the bare minimums, and while they fulfill the legal requirements, it’s often advisable to consider higher coverage limits. Higher limits offer greater financial protection if you are involved in a serious accident where damages exceed these minimums.
What Happens When You Move or Cancel Your Maryland Car Insurance?
It’s important to handle your car insurance correctly when you move into or out of Maryland, or if you decide to cancel your insurance for any reason.
Moving Out of Maryland:
If you are moving out of Maryland, you need to return your Maryland license plates to any MVA (Motor Vehicle Administration) branch office before you cancel your Maryland car insurance. This is a crucial step. If you fail to return your plates and cancel your insurance, the MVA may assume your vehicle is still uninsured in Maryland, leading to penalties. You can return your plates to an MVA branch or mail them. Make sure to get a receipt as proof of plate return.
If you’ve moved out of state and haven’t returned your plates, you should immediately notify the MVA and provide:
- A copy of your vehicle registration from your new state.
- The date your vehicle was registered in your new state.
- Your Maryland tag and title number.
- If you haven’t registered your vehicle in your new state yet, contact your Maryland insurance company to provide policy information detailing the effective and termination dates of your policy.
Moving to Maryland:
If you’re moving to Maryland and currently have car insurance from your previous state, you need to convert your policy to a Maryland policy. Contact your current insurance provider or agent and inform them of your move. They can guide you through the process of switching to a Maryland-compliant policy. Crucially, ensure your insurance company is licensed to operate in Maryland.
Penalties for Driving Uninsured in Maryland
Driving without car insurance in Maryland carries significant financial and legal consequences. It’s not worth the risk. The penalties for driving uninsured include:
- Fines: You will face a fine of $200 for the first 30 days of being uninsured, and an additional $7 for each subsequent day, up to a maximum annual fine of $3,500 per vehicle.
- Registration Suspension: Your vehicle registration will be suspended. Driving with a suspended registration can lead to vehicle impoundment, tickets, and further fines.
- Central Collections Unit (CCU): Failure to respond to MVA insurance notifications can result in your case being transferred to the Central Collections Unit. Once with CCU, fines are subject to a 17% collection fee, and your Maryland state income tax return may be intercepted.
To avoid these penalties, always maintain continuous car insurance coverage in Maryland. If you are cancelling your insurance for a vehicle, ensure you return your license plates to the MVA immediately and obtain a receipt.
Key Takeaways about Maryland Car Insurance
- Mandatory Insurance: Car insurance is legally required for all vehicle owners in Maryland at all times.
- Minimum Coverage: Maryland has specific minimum liability coverage requirements: $30,000/$60,000/$15,000.
- License Plate Return: Always return your Maryland license plates to the MVA before cancelling your insurance when moving out of state.
- Policy Conversion: Convert your out-of-state policy to a Maryland policy when you move to Maryland.
- Severe Penalties: Driving uninsured in Maryland results in hefty fines, registration suspension, and potential further legal actions.
Staying insured is not just about compliance; it’s about protecting yourself and others financially. For more detailed information and resources, refer to the Maryland Motor Vehicle Administration (MVA) and the Maryland Insurance Administration websites. You can also explore the Maryland Automobile Insurance Fund (MAIF) if you are having difficulty obtaining insurance through standard companies. Remember, driving uninsured in Maryland is against the law and carries significant risks.
