Maryland car insurance rates

Maryland's required security is $30,000 per person and $60,000 per accident for bodily injury and $15,000 for property damage (Md. Code, Transportation 17-103(b)), plus $2,500 of personal injury protection that the first named insured may waive only in writing (Insurance 19-505 and 19-506) and uninsured motorist coverage at least equal to those liability amounts (Insurance 19-509).

A lapse is enforced through the registration: insurers report terminations electronically, the registration is suspended, and the Motor Vehicle Administration can assess a daily uninsured penalty. Drivers turned down by two private insurers can apply to the Maryland Automobile Insurance Fund, which does business as Maryland Auto Insurance.

What Transportation 17-103 requires the security to cover

Because uninsured motorist coverage defaults to the liability limit, buying higher liability limits raises the uninsured motorist limit too unless you sign a waiver. That link is worth checking when comparing quotes with different liability limits; uninsured and underinsured motorist coverage explains how the two pay out.

PIP in Maryland and the written waiver

Under Insurance 19-505, the $2,500 minimum covers reasonable medical, hospital, dental, ambulance, funeral and similar expenses incurred within 3 years of the accident, 85% of income lost within 3 years by someone who was earning income, and reimbursement for essential household services. The Maryland Insurance Administration's consumer guide describes PIP as paying regardless of fault.

Waiving it is a formal act under Insurance 19-506. The first named insured must make an affirmative written waiver on the Commissioner's form, after receiving written notice of the coverage's nature, extent and cost. A waiver binds each named insured, each listed driver and household family members aged 16 or older, though one of those people can still collect PIP as first named insured on a separate policy without a waiver. An insurer may not refuse to underwrite someone who declines to waive PIP. For a person continuously insured with the Fund or the same insurer, the waiver lasts until withdrawn in writing.

Enhanced underinsured motorist coverage since July 1, 2024

Insurance 19-509.1 requires insurers to provide enhanced underinsured motorist coverage when a private passenger policy is purchased, unless the first named insured waives it by an affirmative written statement on the Commissioner's form. The waiver is not effective unless the insurer first gives written notice of the coverage's nature, extent, benefit and cost. Enhanced coverage does not apply to a new policy issued on or after July 1, 2024 where it was waived, or to a renewal of a policy issued before that date where the insured did not elect it.

Lapse, FR-19 and the uninsured penalty under Transportation 17-106

• Each insurer must notify the MVA electronically of final terminations or lapses, and the registration is suspended as of the lapse date, effective no later than 60 days after the MVA is notified.
• The suspension lasts until replacement security is shown on an MVA form certified by an insurer or producer and any uninsured penalty is paid.
• The MVA may assess $200 per vehicle for 1 to 30 days without security, then $7 for each day from the 31st day, capped at $3,500 per violation in a 12-month period.
• Owners have 48 hours after notice to surrender registration evidence; failure can lead to a suspension of the driver license until it is returned.
• The Insurance Administration guide says the MVA may ask for a Maryland Insurance Certification Form (FR-19) showing coverage since registration, and insurers must provide it free of charge.

The MVA's own pages could not be read for this profile, so filing requirements after a driver license suspension are not described here. The MVA can state what applies to a particular record. General lapse consequences are set out in car insurance lapse: what happens.

PIP payment timing and the first-party claim route

Insurance 19-508 requires PIP benefits to be paid periodically as claims arise and within 30 days after the insurer receives satisfactory proof of claim. Overdue payments carry simple interest of 1.5% per month. A policy may set a deadline of no less than 12 months after the accident for filing the original claim, and the insurer must mail the insured that last filing date after written notice of the accident.

For a first-party claim where an insured alleges the insurer did not act in good faith, Insurance 27-1001 requires a complaint to be filed with the Insurance Administration before most lawsuits under Courts 3-1701. The insurer has 30 days after the complaint is forwarded to respond with its claim file, and the Administration issues a decision within 90 days of receiving the filing. Claims within District Court small claim jurisdiction are excepted.

Maryland Automobile Insurance Fund eligibility

Insurance 20-301 states the Fund exists to provide the required security to eligible people who cannot obtain it from an Association member. Under 20-502, an applicant must meet one of three conditions: a good-faith attempt with at least two Association members that each refused or rejected for a reason other than nonpayment; a cancellation or nonrenewal by a member for a reason other than nonpayment; or an uninsured period of at least 12 continuous months immediately before the Fund policy, verified by a third-party database or State agency.

The applicant must also have a Maryland connection, such as domicile, residence of more than one year, or state income tax filing, and must not owe the Fund an unpaid premium. A policy issued to someone who does not qualify is void. The Insurance Administration guide lists the Fund's line as 800-492-7120.

Filing a complaint with the Insurance Administration

The Maryland Insurance Administration accepts auto complaints through its secure online portal, which takes attachments up to 10 MB, or on paper forms by mail or fax. Questions go to 1-800-492-6116. A separate route covers complaints about a producer, adviser or public adjuster.

Maryland questions