All 50 U.S. states require drivers to carry auto insurance, but the specific required coverage amounts vary from state to state. In Maryland, the penalties for driving without insurance are severe and include hefty fines and suspension of your license and/or vehicle registration. Providing false insurance information is punishable by a fine of $1,000 and up to 1 year in prison.

Minimum Required Insurance Coverage in Maryland

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $20,000 for one person
• Minimum of $40,000 total for the other driver and all passengers

PDL (Property Damage Liability): Liability coverage for damage to the other driver’s vehicle or property, and other public or private property surrounding the accident scene

• Minimum of $15,000 for all property damage

PIP (Personal Injury Protection): Covers all injuries to yourself and your passengers in an accident that is your fault

• Minimum of $2,500 per person

UMC (Uninsured/Underinsured Motorist Coverage): Covers your injuries and property damage if the other driver is at fault for the accident and has no coverage or inadequate coverage

• Minimum of $20,000 per person
• Minimum of $40,000 per accident for all injuries
• Minimum of $15,000 for property damage

Other Recommended (but not Required) Coverage

Although not required by the state, you may need to carry additional insurance if you have a loan, lien, or lease on your vehicle. You should check with your lender or leasing agent to determine whether additional physical damage coverage is required. If you want to be covered for damages to your vehicle after an accident deemed to be your fault, you must purchase collision coverage.

• Collision Coverage: Covers damage to your vehicle if you cause an accident
• Comprehensive Coverage: Covers damage to your vehicle from causes other than an accident, such as fire, flood, vandalism, and theft.

About Liability Insurance

In general, whichever driver is responsible for the accident assumes the financial responsibility for all damages and injuries. Liability insurance is designed to cover the other driver’s injuries and property damage if you are at fault for an accident. The PDL segment of liability coverage can also be used to pay legal expenses arising from an auto accident. It does not cover injuries to yourself or your passengers, or your own vehicle or property.

About Personal Injury Protection

Maryland requires drivers to carry at least $2,500 in personal injury protection (PIP). PIP covers injuries to yourself and your passengers in an accident, even if you are at fault. It also covers injury-related costs such as physical therapy and funeral expenses. In Maryland, PIP also covers lost wages due to injuries. Maryland drivers should be aware that the minimum coverage amount of $2,500 will be insufficient to cover any major injuries, and therefore all Maryland drivers are advised to carry more than the minimum amount of PIP coverage. PIP benefits may overlap with your health insurance benefits, in which case the minimum coverage may be sufficient, however, your health insurance will not cover non-dependant passengers.

About Uninsured Motorist Coverage

Although Maryland requires all drivers to carry liability insurance, the persistent prevalence of uninsured drivers has caused the state to require UMC in addition to liability coverage. UMC is designed to take the place of the other driver’s liability coverage if you are involved in an accident caused by an uninsured or underinsured driver. Like liability coverage, UMC applies to both medical and property damage costs.

Maryland Auto Insurance Fund

The Maryland Auto Insurance Fund is designed to provide affordable liability insurance for Maryland residents who can’t obtain coverage from a private company. The organization also provides services to help drivers protect their vehicles (such as VIN-etching), and a wealth of information to help Maryland drivers become more educated about insurance and theft prevention.

State-Issued Proof of Insurance

All Maryland drivers are required to carry proof of insurance in their vehicles at all times. You will be asked to show proof of required insurance coverage if you are involved in an accident or a traffic stop. You must also have proof of insurance in order to register or renew the registration on your vehicle. Uninsured drivers in Maryland are subject to fines of $150 for the first 30 days and $7 per day thereafter until insurance is restored. If you let your insurance coverage lapse, you may also have your vehicle registration suspended, and you will have to pay a $25 fee to have your registration reinstated.