Required Automobile Insurance Coverage

Car insurance in Maryland, a vehicle must be covered by liability insurance in order to register (tag) it, prevent suspension of the tags, or renew the registration (obtain your stickers).

The following information will help you understand the coverages required:

LIABILITY INSURANCE: Pays for bodily injury to another person or property damage you cause due to the negligent operation of a vehicle. It may also pay if the accident was caused by a member of your family living with you or a person using your car with your permission. Currently, Maryland requires minimum liability limits of 30/60/15 or $30,000 per person, $60,000 per accident for bodily injury and $15,000 per accident for property damage. Increased limits are available for an additional premium but only where reinsurance can be obtained. Each risk must be submitted and will be considered on its individual merit.

UNINSURED MOTORIST (INCLUDING UNDERINSURED) COVERAGE (UM): Provides recovery for bodily injury and property damage caused by the operator of an uninsured automobile, including a hit-and-run driver (after any applicable deductible). Maryland Law requires uninsured motorist limits of 20/40/15 or $20,000 per person, $40,000 per accident as respects to bodily injury and $15,000 per person for property damage. Increased limits are available for an additional premium but these limits cannot exceed the third party liability limits.

PERSONAL INJURY PROTECTION (PIP): Covers medical expenses, including funeral expenses, for you and your passengers who sustain bodily injury and the loss of income of an injured income producer, up to $2,500 per person. The purpose of the provision for PIP is to assure financial compensation to victims of motor vehicle accidents without regard to the fault of the named insured or other persons entitled to PIP benefits. Personal Injury Protection can be waived at a reduction in premium but such a waiver does not apply to a relative under the age of 16 while residing in your household.

• Lose his or her license plates and vehicle registration privilege.
• Pay uninsured motorist penalty fees for each lapse of insurance in the amount of $150 for the first 30 days, and $7 a day thereafter.
• Pay a restoration fee of up to $25 for the vehicle registration privilege.
• Be prohibited from registering any future vehicles until the insurance violation is cleared.
• Be prohibited from renewing the suspended registration until the insurance violation is cleared.
• Have his or her license plates confiscated by an authorized tag recovery agent, once a registration suspension is in effect.

Note: These penalties are in addition to any fines imposed by a court of law.