Navigating car insurance can be complex, especially when you want to ensure you’re fully compliant with state laws. In Maryland, maintaining car insurance is not just recommended—it’s the law. This guide breaks down everything you need to know about Maryland Car Insurance, from minimum coverage requirements to the penalties for driving uninsured, ensuring you stay legal and protected on the road.
Understanding Maryland’s Mandatory Car Insurance Requirements
Maryland law mandates that every vehicle registered in the state must be insured by a company licensed in Maryland, at all times. This requirement is in place to protect all drivers on the road, ensuring financial responsibility in case of accidents. But what exactly are the minimum car insurance coverages you need to meet these legal obligations?
- Bodily Injury Liability: At least $30,000 to cover injuries to one person in an accident you cause.
- Total Bodily Injury Liability: A minimum of $60,000 if multiple people are injured in an accident you are at fault for.
- Property Damage Liability: Coverage of no less than $15,000 for damage you cause to another person’s property, such as their vehicle or other belongings.
These are the absolute minimums, and while they satisfy the legal requirements, it’s often advisable to consider higher coverage limits for greater financial protection.
What Happens If You Drive Uninsured in Maryland? Penalties and Fines
Driving without the required Maryland car insurance can lead to serious financial and legal repercussions. Maryland takes uninsured driving very seriously. Here’s a breakdown of the penalties:
- Fines: For the first 30 days of being uninsured, you’ll face a $200 fine. After 30 days, it increases by $7 for each additional day, up to a maximum of $3,500 per vehicle annually.
- Registration Suspension: Your vehicle registration will be suspended if you are caught driving without insurance.
- Vehicle Impoundment: Driving with a suspended registration can lead to your vehicle being impounded. You may also receive tickets and further fines.
- Central Collections Unit (CCU): Failure to respond to notifications from the Maryland Motor Vehicle Administration (MVA) regarding insurance will result in your case being transferred to the CCU. Once with the CCU, fines are subject to a 17% collection fee, and your state income tax return may be intercepted.
To avoid these penalties, always ensure your Maryland car insurance is active and meets the state’s minimum requirements.
Returning Your License Plates: Important Steps When Cancelling Insurance
It’s crucial to understand the process for returning your Maryland license plates, especially when you cancel your insurance, move out of state, or sell your vehicle.
Before cancelling your Maryland car insurance, you must return your license plates to any MVA branch office. This step is vital to avoid potential penalties and ensure you are no longer linked to the vehicle’s registration in Maryland’s system. Tag and title companies can perform this service, but they typically charge a fee.
Moving Out of Maryland? If you’ve moved out of state and haven’t returned your plates, it’s essential to notify the MVA. You’ll need to provide:
- A copy of your vehicle registration from your new state.
- The date your vehicle was titled in the new state.
- Your Maryland tag and title number.
- If you haven’t yet titled your vehicle out of state, your insurance company must provide policy information detailing the effective and termination dates to the MVA.
Moving to Maryland? Transitioning Your Car Insurance Policy
If you are moving to Maryland and currently have car insurance from your previous state, you need to act quickly to ensure you are properly covered with Maryland car insurance. Contact your current insurance provider or agent and inform them that you need to convert your policy to a Maryland policy. Crucially, verify that your insurance company is licensed to operate in Maryland.
Resources for Maryland Car Insurance and Further Assistance
Finding the right Maryland car insurance can seem daunting, but several resources are available to assist you:
- Maryland Automobile Insurance Fund (MAIF): If you’ve been denied insurance by two companies or had a policy cancelled, MAIF is designed to provide coverage to Maryland residents in these situations. Visit the MAIF website for more information on securing insurance.
- Maryland Insurance Administration (MIA): The MIA is a valuable resource for all insurance-related queries in Maryland. Their website offers information on approved insurance companies, consumer education, and more.
- Approved Insurance Companies in Maryland: The MVA provides a list of approved vehicle insurance companies licensed to operate in Maryland, ensuring you choose a legitimate and compliant insurer.
Driving insured is not just a legal obligation in Maryland—it’s a responsible action that protects you and others. Make sure you have adequate Maryland car insurance coverage and stay informed about the requirements to drive legally and safely in the state.
