Maryland car insurance requirements and laws

Minimum car insurance requirements

Maryland law requires every vehicle owner to buy and keep four kinds of coverage: bodily injury liability, property damage liability, uninsured/underinsured motorist coverage and personal injury protection (Maryland Insurance Administration). Compare states with the state car insurance requirements lookup.

PIP choices. Maryland insurers must include $2,500 of PIP, which reimburses medical bills and some lost income regardless of fault. Covering every insured driver and household member over 16 is "full PIP." You can decline PIP for listed drivers and household members over 16 ("limited PIP"), and some insurers, including the state's insurer of last resort, let qualifying policyholders reject PIP entirely. The MIA warns that PIP is often the only quick source of payment for lost wages, so consider waiving it only if your health and disability coverage are strong (Personal injury protection (PIP) explained).

What the minimums mean in practice. If you cause a crash and the other driver has $40,000 in medical bills and lost wages, a minimum policy pays $30,000 and you can be sued for the other $10,000. The $15,000 property damage limit is one of the lowest in the country and will not cover most newer cars, let alone a multi-car crash. how much liability coverage do you need? and the How much car insurance do I need? can help you size your limits.

Fault system and what it means after a crash

Maryland is an at-fault state with mandatory PIP layered on top, the arrangement often called an add-on state. PIP pays first for your own injuries, but it does not stop you from suing the at-fault driver or limit what you can recover. See no-fault vs at-fault states.

The bigger issue is Maryland's contributory negligence rule, which the state's highest court kept in place in 2013. If the other side proves you were even slightly at fault, for example 5% for drifting over a lane line, you can be barred from recovering anything from them. That makes your own coverage (PIP, UM, collision) more important than in comparative fault states (comparative vs contributory negligence). Lawsuits for injuries or vehicle damage generally must be filed within three years (statutes of limitations for car accident claims).

Optional coverage worth considering here

• Higher UM and enhanced underinsured coverage. Required UM matches the 30/60/15 minimums, but you can buy more. Insurers also offer Enhanced Underinsured Motorist (EUIM) coverage, which pays on top of the at-fault driver's liability limits instead of being reduced by them. The Insurance Research Council estimates 16.9% of Maryland drivers were uninsured in 2023, above the national 15.4% (uninsured and underinsured motorist coverage explained).
• Higher property damage liability. Raising $15,000 to $50,000 or $100,000 usually costs little.
• Collision. Because of contributory negligence, collision may be your only way to fix your car if you share any blame (collision coverage explained).
• Comprehensive for deer strikes, theft and storm damage (comprehensive coverage explained).

What drives rates in Maryland

The NAIC puts Maryland's average annual expenditure at $1,477 in 2023, above the national average of $1,282 (What NAIC auto insurance data measures).

Dense traffic in the Baltimore–Washington corridor, heavy commuting on I-95 and the Beltway, high medical and repair costs, and vehicle theft in urban areas push claims up. An uninsured rate above the national average raises the cost of UM coverage. Rates in Baltimore City and Prince George's County typically run higher than on the Eastern Shore or in western Maryland (Why your ZIP code changes your car insurance price).

Penalties for driving uninsured

Insurers must tell the Motor Vehicle Administration when a policy is cancelled or not renewed. If the MVA cannot verify coverage, it can require an insurance certification (Form FR-19) and charges the owner an uninsured motorist penalty of $200 for the first 30 days without coverage plus $7 for each day after that (MIA consumer guide). Other consequences include suspension of the registration, confiscation of the plates by a tag recovery agent, a registration restoration fee of up to $25, and a bar on registering other vehicles until the violation is cleared. Giving false evidence of insurance can bring a fine of up to $1,000, up to a year in jail, or both. See penalties for driving without insurance and what happens if your car insurance lapses.

SR-22 and high-risk drivers

Maryland relies mainly on electronic reporting by insurers and the FR-19 certification to confirm coverage. Drivers who cannot find a policy in the private market can turn to the Maryland Automobile Insurance Fund (MAIF), doing business as Maryland Auto, the state-created insurer of last resort. Out-of-state drivers with an SR-22 obligation from another state should keep it in place after moving (SR-22 insurance explained, high-risk car insurance: options when insurers say no, residual market).

Insurers with a strong presence in Maryland

GEICO is headquartered in Chevy Chase and is a major writer in the state. State Farm, Progressive, Allstate, Erie Insurance and Nationwide sell widely, and USAA serves the state's large military community around Fort Meade, Andrews and Aberdeen (car insurance for military members and veterans). Agency Insurance Company, based in the state, focuses on drivers who need lower-cost coverage.

Where to get help

The Maryland Insurance Administration (MIA) regulates insurers and handles complaints. Call 800-492-6116 (or 410-468-2000; the auto and homeowners complaint line is 410-468-2340), visit insurance.maryland.gov, or write to 200 St. Paul Place, Suite 2700, Baltimore, MD 21202. The MIA's free Consumer Guide to Auto Insurance explains coverage choices in detail. To challenge an MVA lapse penalty, contact the MVA at 410-768-7000. For an injury claim where fault is disputed, a licensed Maryland attorney can explain how contributory negligence applies.