Auto Insurance Laws and Trends in MD

Although it is one of the smallest states in the country, Maryland has much higher auto insurance rates than most of the other states, as reflected in the following 2009 table:

These high insurance rates are mainly due to the high accident rate that exists in the state. This is why it is important to carry higher liability limits than the required minimums in Maryland.

Required minimum auto insurance coverage in Maryland

The mandatory coverage in Maryland includes :

• Bodily injury: Payments for lawyer fees, medical expenses, loss of wages, pain and suffering, and the amount necessary to settle injury claims.
• Property damage: Payments for lawyer fees, damage to another person's property and vehicle.
• Personal Injury Protection (PIP): The amount not covered by a personal health plan for medical expenses, funeral expenses, loss of wages, rehabilitation, and day care expenses.
• Under/uninsured motorist coverage: If you are involved in an accident with someone who doesn't carry adequate or valid auto insurance, this will pay for expenses incurred.

Optional coverage includes collision  (which covers physical damages to your vehicle if you are in an at-fault accident or rollover ) and comprehensive  (which covers for damages from theft, fire, vandalism, windstorm, and animal collision).

Maryland's auto insurance monitoring system

The Maryland DMV conducts random audits among motorists to ensure that they are being compliant to all insurance rules and regulations. If a motorist fails to have valid insurance; if they allow their policy to lapse or it has been cancelled, they face fines of $150 plus $7 per day until they are able to prove that they have valid insurance. Once the insurance policy has been reinstated, it will more than likely be at a higher premium than it previously was. This is because they are now deemed to be a high-risk driver.

Request a free quote for Maryland auto insurance today!