Maryland Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Maryland?

• In the state of Maryland, the accident rate is high. This means all drivers must carry the minimum levels of liability coverage or suffer the consequences – a suspended license and even jail.
• The minimum levels of liability coverage are $20,000 per person for bodily injury, $40,000 per accident for bodily injury, and $15,000 per accident for property. 

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in the state of Maryland, your policy must include minimum liability coverage of:

$20,000 per person for bodily injury,
$40,000 per accident for bodily injury,
and
$15,000 per accident for property 

What are the Rental Car Insurance Requirements?

In the state of Maryland it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required by Maryland law. It is important to keep in mind that most Maryland auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

According to the Maryland Insurance Administration, Uninsured/Underinsured Motorist Coverage is not required. The Maryland Insurance Administration states that the minimum liability coverage is as follows:

$20,000 per person for bodily injury,
$40,000 per accident for bodily injury,
and
$15,000 per accident for property 

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Maryland, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance carefully before you sign on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If you allow your insurance to lapse in the state of Maryland, you will be considered an uninsured motorist. This means you will lose your license plates and vehicle registration privileges, and you will also have to pay uninsured motorist penalty fees. For each lapse of insurance, you must pay $150 for the first 30 days, and $7 for each date thereafter. You will also be required to pay a restoration fee of up to $25 for a vehicle’s registration.

Other penalties that may be imposed include:

• You may be prohibited from registering any future vehicles until all insurance violations are cleared
• An authorized tag recovery agent may confiscate your license plates, once registration suspension is in effect
• You may have to pay a fine of up to $1,000 and/or 1 year imprisonment if provided false evidence of insurance

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Maryland, insurance companies can use your credit history to determine rates and offers for products. Auto insurance companies do not use Personal Credit History alone to figure rates. They also consider age, gender, where you live, car make and model, how much you drive, and prior insurance coverage.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Maryland follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Maryland is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Maryland resident’s average insurance premium was approximately $949, the 12th most expensive in the nation. This was up 0.1% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Maryland Insurance Administration