- The state of Maryland requires all drivers in the state to carry a certain amount of liability coverage to provide compensation for property damage, death or injury to other parties when the driver caused the accident. A policy must have at least $20,000 bodily injury for one person and at least $40,000 total per accident as well as $15,000 for property damage, which covers the other driver's vehicle as well as other property that might suffer damage.
- State law requires any insured driver to send the F-19 insurance certificate to the Motor Vehicle Administration. This signed paperwork states that the driver will maintain the necessary insurance coverage required by the state and will never drive the vehicle uninsured. The driver can bring this to the MVA office, mail or fax it in or have his insurance agent do so.
- The MVA can issue a host of fines for failure to maintain coverage. The office notes that the courts can impose fines as well. Possible fines include $150 for the first month of uninsured driving and $7 for every subsequent day and up to a $25 fine for reinstating vehicle registration. Providing false evidence of auto insurance can lead to a fine up to $1,000 and/or a year in jail.
- Failure to maintain auto insurance can also result in the loss of license plates and vehicle registration. The state can also confiscate the license plates. The law does not permit a person to rectify these matters until he provides proof of insurance.
- In Maryland, an insured driver can exclude coverage for other people in the household. State law permits insurance carriers to use credit score in determining rates although they will also take other factors into account. Maryland uses the tort system, meaning that every accident must have an at fault driver and that driver must pay for all damages through his insurance. This system would make it prudent for drivers to consider carrying coverage above the state minimums.
Insurance Minimums
Insurance Certificate
Fines
Other Penalties
Other Insurance Laws
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