Insurance Center

If you want to drive a vehicle in Maryland then you better have it insured―it is illegal not to. Considering that the highways and roads around Baltimore and Washington DC are ranked as the second most congested in the nation, the odds for incidents are high. Thus, it is no surprise that Maryland requires more coverage than most other places: three types to be exact.

Insurance Coverage Requirements

Minimum Liability

Maryland law sets the minimum levels of liability coverage that motorists must maintain:

• $20,000 per person for bodily injury

• $40,000 per accident for bodily injury

• $15,000 per accident for property

Automotive liability is essentially the monetary umbrella you need to have in place if you have been held legally at fault for an accident. In most instances, you will see the above figures presented by insurance companies as 20/40/15. When you break down the numbers, it looks like this:

• The first number is what insurance will pay out per person injured in an accident.

• The second number is tied into the first and reflects the total injury payout available per accident. Thus, if an accident that you caused entailed more than two parties facing serious medical costs, a claims battle will ensue between those parties. Ultimately, if the $40,000 does not foot the bill, you may be sued in court for more money.

• The last number refers solely to property damage and how much per single accident the insurance will cover. This type of coverage reflects damage caused on a range of property types, from another driver's dented vehicle to houses, garages, light poles, and buildings.

Uninsured Motorists Coverage

Many states file this under elective insurance, but not Maryland. The state simply wants to make sure all gaps that can come up in the system are closed. Not only will having this type of coverage to go along with the liability save you a headache if you are in an accident, it saves everybody money in the long run.

Paying into an uninsured pot never leaves anybody stuck with a huge bill that never gets paid. You're protected, other drivers are protected, and the insurance companies are protected. The same minimum levels required for liability coverage are also what you will need to carry for uninsured motorists: 20/40/15.

Personal Injury Protection (PIP)

This type of insurance is popular in most no-fault states. So why do you need it in Maryland, which is a tort state? The answer simply comes down to having added security in case you are injured in an accident and are not able to work. This type of coverage will kick in and help you through. The minimum amount required is $2500, so that may not get you too far unless the injury is relatively minor.

But usually insurance companies allow you to max out the coverage at $10,000. Taking into account the cost of PIP, which is pretty inexpensive, the high end might appeal to many motorists.

Check the details of your health care policy because certain carriers offer coverage equal to or similar to PIP. If you have this type of set up then you are exempt from having to purchase PIP.

Supplemental Insurance

There are plenty of other insurance policy upgrades available to protect you more substantially. These include:

Collision: Having this coverage protects your vehicle when it is damaged in a collision with any type of object or in an accident with another automobile. If a vehicle is financed, most likely the bank or lending company will require you to carry this type of insurance, essentially to protect its property while it is in your possession.

Comprehensive: This type of insurance is a bit like having a force-field surrounding your vehicle. It covers the loss of the vehicle or its contents due to theft. It also covers damage incurred without a collision (i.e., natural disasters like flood, hail, and earthquakes). It also pays out in case of vandalism.

Penalties for Driving Without Insurance

There are two major penalties involved with not having insurance. There are other consequences, but they are generally just expansions on the first two.

• Your registration is revoked and you are asked to return the license plates on your vehicle. Not doing so can result in hefty fines and the possibility of some jail time.

• Many of us have accidentally let our insurance slide at one time or another. With so many bills to pay one can easily slip past us every now and again. If this happens you need to rectify the matter immediately. If you don't you will be fined $150 for the first 30 days and then $7 for each day after that. You do the math: a few extra months without insurance and the fine is through the roof. Plus, your registration is gone and there will be a reinstatement fee when you get matters back in order.

For more information, check out the MVA's comprehensive information page.