Maryland car insurance: what the law requires

What every Maryland policy must include

Maryland ties the insurance requirement to the registration, not to how much you drive. The MVA says the minimums apply even when a registered vehicle is parked and not being driven. A policy that meets the law has four parts:

Collision and comprehensive are optional under state law, but a lender or leasing company will usually require them. Insurers also sell enhanced underinsured motorist coverage, which can pay more when the at-fault driver carries low limits. Our guide to uninsured motorist coverage explains how the two layers fit together.

The minimums are a legal floor, not a recommendation. Serious injuries or a crash with a newer vehicle can cost more than $30,000 or $15,000, and anything above your limit can become your own debt. Read what liability insurance covers before you settle on limits.

PIP in Maryland: keep it, limit it or waive it

Maryland is an at-fault state with "add-on" PIP. The at-fault driver's liability insurance still pays for injuries they cause, but PIP gives you a quick first source of money for medical bills and lost wages, no matter who caused the crash.

Insurers must offer at least $2,500 of PIP. The Maryland Insurance Administration says you can buy limited PIP, and some people can reject it entirely, usually because they already have health coverage. Waiving PIP lowers the premium, but the administration points out what you give up: PIP can also pay lost wages and medical costs for household members, which a health plan does not replace. Higher PIP limits are available at an extra cost. Our personal injury protection guide compares these choices in more detail.

When private insurers say no: the Maryland Automobile Insurance Fund

Drivers with several tickets or crashes may find that private insurers will not sell them a policy. Maryland still requires coverage, so it runs a state insurer of last resort, the Maryland Automobile Insurance Fund (MAIF), which does business as Maryland Auto Insurance.

According to the Maryland Insurance Administration, a resident who has been turned down by at least 2 private insurers can seek coverage from MAIF. Before that point, independent agents who work with high-risk drivers may still find a private option. MAIF is also among the insurers that may let some policyholders reject all PIP if they meet its conditions.

What a lapse costs: MVA uninsured penalties

Insurers must notify the MVA electronically when a policy ends. If the MVA cannot confirm continuous coverage, it opens an insurance compliance case and asks for a Maryland Insurance Certification Form (FR-19). If the lapse is real, state law sets the penalty:

Unpaid penalties can lead to a registration suspension, vehicle flags and referral to the state's Central Collections Unit, which adds 17% to the amount due. A gap can also mean higher premiums later, and some insurers turn down applicants with a recent lapse in coverage. If you stop insuring a car you no longer use, returning the plates to the MVA is what stops the penalties from building up.

If you receive an insurance violation notice:

1. Compare the violation period on the notice with your policy records.
2. If you were insured, ask your insurer to correct the record and send an electronic FR-19 to the MVA.
3. If the lapse was real, pay by the deadline on the notice to avoid suspension and collection charges.
4. Contact the MVA if you want to challenge the penalty.

Maryland premiums compared with the national average

NAIC data put the average amount Maryland drivers spent per insured vehicle at $1,476.78 in 2023, above the national average of $1,281. For policies that combine liability, collision and comprehensive, the average premium was $1,601.63, also above the U.S. figure of $1,438. That works out to about $133 a month.

Maryland limits how insurers use credit history. The largest credit-based surcharge allowed is 40%, and credit information older than 5 years may not be used. The bad credit guide compares this with other states.

About 16.9% of Maryland drivers were uninsured in 2023, above the national rate of 15.4%. That is one reason the state makes uninsured motorist coverage mandatory rather than optional.

Road safety in Maryland

IIHS counted 578 crash deaths in Maryland in 2024, or 9.2 per 100,000 people, below the national rate of 11.5 per 100,000 people. Measured by miles driven, the rate was 1.01 per 100 million miles, compared with 1.19 per 100 million miles nationally. Speeding played a part in 20% of deaths, below the U.S. share of 29%.

Nearby jurisdictions set different rules. If you commute or plan to move, compare Virginia, Pennsylvania, Delaware and Washington, D.C., or browse every state on the state guides page.