Car Insurance Laws in Maryland

When it comes to auto insurance, Maryland only requires liability coverage, which is comprised of bodily injury and property damage coverage.

Auto Insurance Requirements in Maryland

Every vehicle in Maryland requires the following types of liability coverage and limits.

• Bodily injury: $30,000 per person, $60,000 per accident
• Property damage: $15,000 per accident¹

Penalties for Driving Without Insurance

Fourteen percent of drivers in Maryland lack insurance as of the most recent data available.² If caught and convicted, they could face the following penalties.

Find information on uninsured motorist coverage, which pays for your medical bills and property damages in a collision with an uninsured driver, below.

At-Fault System

Maryland is an at-fault state. If a driver causes an accident, they are responsible for all of the injuries, deaths and property damages of everyone involved. However, due to the state’s contributory negligence laws, if a victim has any percentage of fault in an accident, they cannot receive compensation in a civil suit — even if it’s only 1 percent fault.

More Car Insurance Laws

In Maryland, it’s legal for insurance companies to determine premiums based on gender, credit score and marital status. The only exception is companies can’t increase premiums solely due to someone’s spouse dying.³ Believe it or not, this is not the case in many states, where insurers raise premiums for widows and widowers.

When it comes to midterm cancellations, insurance companies in Maryland must give you a 45-day head’s up prior to the expiration date — or only 10 days’ notice if the cancellation is due to non-payment of premiums. For nonrenewals at the end of policies, companies must give you a 45-day notice before the expiration date.⁴

Don’t wait more than three years to file property damage or personal injury claims in Maryland, the state’s statute of limitations.

Liability coverage isn’t enough, as it won’t apply to any of your losses. For that, you’ll need full coverage insurance, which is liability plus the following coverages.

Collision Insurance Coverage

Whether you were at fault in an accident, collision insurance can pay to repair or replace your car.

Comprehensive Coverage

Collisions aren’t the only danger to worry about. There’s also auto theft, vandalism and weather events like hurricanes. For those, comprehensive coverage will pay for your car’s repairs or a replacement if it’s totaled.

Uninsured/Underinsured Motorist Property Damage/Bodily Injury Coverage

What if you get into an accident with a driver who has no insurance or whose limits aren’t high enough to cover your losses? That’s where uninsured/underinsured motorist coverage could kick in. Essentially, it’s liability insurance for your losses and its limits should match your liability limits. For example, if you have $150,000 for bodily injury per person, get $150,000 for uninsured bodily injury per person, as well.

Medical Payments Coverage

Lastly, medical payments coverage, also known as MedPay, pays for your and your passengers’ medical costs if you’re injured in a car accident, regardless of fault. Note that MedPay differs from the personal injury protection (PIP) offered in no-fault states as PIP includes reimbursements for lost wages as well as child care while MedPay doesn’t.

You may also want to consider other add-ons like the ones below.

Roadside Assistance

Stuck on the side of the road? 24/7 roadside assistance can provide towing, lockout help, jumpstarts, batteries, fuel delivery and other essential services.

Rental Car Coverage

If your car is being repaired under a covered claim, rental car coverage will contribute to the cost of a rental car. Some policies even contribute to rideshare or public transportation costs.

Gap Insurance

If you have a loan or a lease, most likely, you’ll be required to get gap insurance, which pays for the remainder of your balance if your car is totaled. Some auto insurance providers offer gap insurance, but not all. In some cases, you have to buy it from the dealership, manufacturer or a third-party financial institution.

As of 2020, the last time the National Association of Insurance Commissioners released national data, car insurance in Maryland cost $1,201 annually. While that may not sound like a huge number, it’s 15 percent higher than the national average for the same year.⁵

No drivers in Maryland can use their handheld electronic devices or text while driving and the law is under primary enforcement, meaning the police can stop you for that violation alone. For teen drivers, no cell phone usage is allowed at all, even if it’s hands-free.⁵

To get the best auto insurance in Maryland, the safest bet is to keep a clean driving record and a good credit score. Any incidents on your driving record designate you as a high-risk driver, which means companies won’t want to insure you and the ones that do will charge you exorbitant prices. Learn more about insuring your car in Maryland in our frequently asked questions (FAQs) section below.