Obtaining and Maintaining Auto Insurance in Maryland

The state of Maryland imposes a minimum amount of auto insurance coverage for personal injuries and well as property damage. To elaborate, there is a minimum limit of $20,000 bodily injury coverage per person involved in an accident, $40,000 total bodily injury coverage, and $15,000 coverage for property damage. However, auto insurance policyholders in Maryland typically obtain policies with higher amounts of coverage, such as $100,000 bodily injury coverage per person, $300,000 total injury coverage and $50,000 property damage coverage. Unlike most states in the country, Maryland also mandates the inclusion of coverage for uninsured motorist bodily injury, with minimum limit of $20,000 per person and $40,000 for total injuries per accident. This provision is meant to answer liabilities incurring from being in an accident with a person irresponsible enough to cancel their auto insurance or letting them lapse. Other optional coverage that motorists in Maryland typical obtain include insurance for medical expenses resulting from auto accidents, collision, comprehensive insurance, and personal injury protection. The last coverage is intended to assure financial compensation to persons involved in the accident, regardless of who is determined to be at fault.

There is no denying that the cost of obtaining insurance policies are rising and this is also true when it comes to auto insurance in Maryland. However, there are ways to lower the cost of obtaining auto insurance. Know that higher premium rates are imposed when a policyholder gets involved in accidents or incurred violations. To be able to enjoy more affordable rates, it is always good to maintain excellent driving record and be classified as a good defensive driver and obeying traffic laws every time you’re on the road. Another ways to get lower premium rates would be to have an auto insurance policy with higher deductibles, which is the amount the policyholder have to pay on their own before they can obtain their claims. Policyholders should also evaluate the model and type of their vehicle. This is because it may not be as cost effective to insure older vehicles compared to relatively new ones. To this end, some policyholders may even opt not to include all the other optional coverage when insuring older vehicles. However, vehicles obtained through loan may be required to have collision and comprehensive coverage by creditors, in order to protect their interest.

Those who choose to not to continue their auto insurance or to default their insurance policies would face high penalties in case they are caught. One of the consequences of driving uninsured vehicles could lose his or her driver’s licenser as well as forfeit vehicle registration privilege. There are also penalty fees imposed by the state, which amounted to $150 for the first 30 days. Beyond this time period, the uninsured motorist has to pay $7 per day until such time that he or she manages to obtain another auto insurance policy. The motorist may also be required to clear his or her violation before being allowed to renew their suspended vehicle registration. The license plates of the uninsured vehicle would also be confiscated for the duration of the suspension. In addition, the court may also impose other fines and penalties, as well as jail time, depending on the severity of the situation upon which the uninsured motorist was apprehended.

When a motorist who had a series of violations and suspensions in their record wants to apply for auto insurance, there is a good chance of being rejected by the insurance provider. This is one of the reasons why the Maryland Automobile Insurance Fund was created. If a motorist has been denied auto insurance for one reason or another, he or she can approach the state’s Department of Insurance and inquire about obtaining insurance through the fund.

We help our Maryland customers in Baltimore, Columbia, Silver Spring, Dundalk, Wheaton-Glenmont, Ellicott City, Germantown, Bethesda, Frederick, Gaithersburg, Bowie, MD and other cities in the Old Line State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Maryland insurance agent and broker network, you can independently compare rates from up to five insurance companies.

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