Maryland Car Insurance

An auto insurance policy protects against several types of losses or damages related to an automobile accident. Some types of coverage are required by state laws, while others are typically included or optional as additional endorsements on the auto insurance policy, such as rental reimbursement coverage or mechanical breakdown coverage. Maryland state law requires personal injury protection up to at least $2,500 coverage. This pays for your own medical expenses, regardless of who was at fault in an accident. A policy will also include liability insurance, which protects policyholders that are at fault in an accident, for both bodily injury and property damage expenses. These are the minimum liability coverage required by the state of Maryland:

Required Coverages in Maryland:

Liability Coverage:

  • Bodily Injury Liability Per Person: $30,000
  • Bodily Injury Liability Per Accident: $60,000
  • Property Damage Liability: $15,000

Uninsured/Underinsured Motorist Coverage:

  • Bodily Injury Per Person: $30,000
  • Bodily Injury Per Accident: $60,000
  • Property Damage: $15,000

If you are pulled over without proof of insurance, your license plates may be removed or you may be charged with a fine. The Maryland Automobile Insurance Fund (MAIF) provides car insurance for Maryland residents unable to obtain auto insurance on the private market.

Determining Your Rate in Maryland

An insurer quotes your premium based on information you provide. Each provider uses this information to evaluate your individual risk characteristics, so it’s important to give the same information each time an insurer evaluates the cost of your premium. This information includes the type of vehicle you are insuring and how the vehicle is used, your age, gender, and marital status, your driving history, your credit history, and the area you live and drive in.

Insurance providers may only consider traffic accidents and traffic violations that have occurred in the past three years. Claims filed by policyholders in your area, and the population density and crime rate in your area will be used to determine your level of risk. Males and younger adults tend to be at a higher risk for accidents, so gender and age will impact your rate, as well as marital status— married individuals have a lower incidence of accidents and claims, and usually pay a lower premium than single drivers.

Discounts may be applied to your premium for a good driving record, safety devices and anti-theft devices installed on your vehicle, for renewing an auto policy with your insurance company, or for taking a driver education course. Maryland was ranked the tenth most expensive state for an average automobile expenditure at $929 in 2009 by the Insurance Information Institute.