Is car insurance required in Maryland?

Car insurance is mandatory in Maryland. State laws require all drivers to carry vehicle insurance with minimum liability coverage of 30/60/15 in Maryland. Failure to obtain insurance or display proof of insurance can result in fines, penalties and even jail time.

Do you need car insurance to register a car in Maryland?

Yes, you need to carry insurance according to the state minimum requirements to register a car in Maryland.

What is “basic” car insurance in Maryland?

Basic car insurance in Maryland indicates the minimum insurance requirements mandated by the state law. This includes 30/60/15 liability coverage. This is the minimum coverage you need to legally drive in the state.

Does insurance follow the car or driver in Maryland?

Car insurance usually follows the car and not the driver in Maryland. This usually includes liability insurance, property damage insurance and most other forms of coverage you might purchase. PIP and Medpay, however, follow the driver.

Can you get car insurance without a license in Maryland?

It is not mandatory to have a license to purchase car insurance in Maryland. However, it is likely that most insurance providers will insist on a license. You can have an easier time getting car insurance without a license if you list another driver with a valid license.

Is Maryland a No-Fault State and What Does This Mean?

Maryland is <a href="https://www.iii.org/sites/default/files/docs/pdf/insurance_factbook_2020.pdf" target="_blank">an at-fault state</a>. This means that, if an accident happens, the at-fault party will be considered liable and their insurance company would need to cover relevant costs.

Is PIP Coverage Required in State?

PIP or personal injury protection coverage is not mandatory in Maryland. However, depending on your needs, it can be a wise choice to include it in your policy.

Does Maryland Require Uninsured Motorist Insurance?

While Maryland does not require uninsured motorist insurance, it can be a good idea for you to add it to your policy for further protection from uninsured motorists.

Does Maryland Allow for Diminished Value Compensation After an Accident?

Maryland does allow for diminished value compensation. This means that you might be entitled to receive a cash payment for the diminished value of your car after an accident.

How Do Car Insurance Requirements Change After a DUI in Maryland?

Car insurance requirements in Maryland do not change after a DUI . However, it is likely that your insurance costs will increase and you might have to buy additional SR-22 coverage.

What is a CARCO Inspection and is it Required?

A CARCO inspection is carried out pre-insurance to ascertain the condition of a car. It assesses several factors like the physical condition of the car, the distance traveled and the accessories. There are no added fees for this inspection. Maryland is not among the states that require a CARCO inspection

Maryland Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

Maryland’s minimum car insurance requirements dictate that drivers should carry minimum liability coverage of 30/60/15 to register their vehicles. This means your car insurance policy should include $30,000 of bodily injury coverage per person, with a minimum of $60,000 injury coverage per accident and $15,000 in property damage coverage. Failure to meet these minimum insurance requirements mandated by the state can attract fines, penalties, suspension or even jail time. While this mandated minimum coverage protects third parties in the event of an accident, you need to purchase additional coverage to protect your vehicle and yourself.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Maryland
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Maryland
FAQs

What Is the Minimum Car Insurance Requirement in Maryland?

How much car insurance do you need in Maryland? According to state laws, you need to carry mandatory minimum liability insurance in Maryland to legally drive your vehicle. This includes:

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

You might see these liability limits expressed as 30/60/15. For greater financial protection, you can choose to pay more for your insurance and thereby increase these minimums.

What Does This Minimum Coverage Mean?

In most states, including Maryland, liability insurance is a mandatory requirement. This covers any injury or property damage sustained by a third party if you cause an accident. In Maryland, mandatory liability limits are 30/60/15, which means you need a minimum of $30,000 coverage per person for injuries with up to $60,000 total per accident for all involved and $15,000 for property damage.

How Much Does the Minimum Car Insurance Cost in Maryland?

Car insurance costs in Maryland depend on several factors including your age, ZIP code, credit score, driving history, the make and model of your car and more. Also, costs will vary between different car insurance providers in Maryland.

The cheapest minimum car insurance in Maryland is from USAA with an average annual cost of $673. However, USAA policies are only for current and former military members and their families. The most affordable option available for most people is Erie, with an average cost of $926 per year.

These prices are only estimates based on rates for an average Maryland driver and should not be used to compare insurance prices.

MoneyGeek analyzed car insurance rates in Maryland based on the state minimum limits of 30/60/15 for a sample driver profile of a 40-year old male driver with good credit and a clean driving record, driving a 2010 Toyota Camry.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Maryland.

What Is the Minimum Car Insurance Requirement in Maryland While Leasing a Car?

If you want to lease a car in Maryland, it is crucial to fully understand your leasing terms so that you know the minimum insurance requirements of your leasing company, which usually exceed the state minimum insurance requirements. In Maryland, most leasing companies are likely to require full coverage insurance with at least 100/300/50 liability coverage.

If you are not sure how much car insurance you need in Maryland, MoneyGeek recommends a full coverage policy with a minimum of 50/100/50 liability limits. Maryland has a relatively moderate risk of uninsured motorists at 14.1% of all drivers. A full coverage policy is the best way to protect yourself financially if you are involved in an accident with an uninsured or underinsured motorist. This way, you are covered for bodily injuries and property damage.

Penalties for Driving Without Car Insurance in Maryland

If you drive without insurance in Maryland, you can be exposed to various fines and penalties. In Maryland, you are required to carry proof of insurance at all times and present that proof to law enforcement officers whenever asked.

If you are caught driving without insurance in Maryland, here are some of the possible consequences:

A fine of $150 for the first 30 uninsured days and $7 for each additional day
Loss of vehicle license plates and registration
$25 fee for restoration of registration
A fine of up to $1,000 and/or imprisonment up to one year for providing false evidence of registration

Frequently Asked Questions About Car Insurance in Maryland

In Maryland, you need as much information about car insurance requirements as possible. Here are the answers to some of the most frequently asked questions about car insurance in this state.

Learn More About Car Insurance

About Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

Insurance Information Institute. "2020 Insurance Factbook." Accessed September 18, 2021.
Insurance Information Institute. "Facts + Statistics: Uninsured motorists." Accessed September 18, 2021.
Kelley Blue Book. "Penalties for Driving Without Car Insurance by State." Accessed September 18, 2021.
Maryland Department of Transportation. "Insurance Requirements." Accessed September 18, 2021.