Maryland Car Insurance

Last Updated on September 29, 2020 by Andrew Lee

All car owners and drivers in Maryland have to purchase auto insurance in order to legally operate their motor vehicles. Unlike most states though, wherein one can register an automobile through presenting the car insurance identification card, this particular state has a different procedure. Before you purchase Maryland car insurance, it pays to know more about it, how it works, as well as the fines and penalties you may incur when you fail to obtain the required coverage types.

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The average cost of car insurance in Maryland

The National Association of Insurance Commissioners (NAIC) claims that the average person pays roughly $979.28 for car insurance in Maryland each year.

They broke this figure down to:

$596.17 is the average annual liability insurance expenditure.

$327.89 is the average annual collision insurance expenditure.

$147.29 is the average annual comprehensive insurance expenditure.


Young Drivers in Maryland

In the Chesapeake State, young drivers pay:

  • $1019.2 for state minimum coverage
  • $1796 for basic full coverage
  • $2394 for premium full coverage

Statistically, young drivers have higher risks of getting into accidents and causing road collisions hence the higher premiums.

Female Drivers in Maryland

Our methodology used the driving profile of a female aged 35. We found that females pay:

  • $615.6 for state minimum coverage
  • $929.2 for basic full coverage
  • $1251.2 for premium full coverage

Female drivers can have car insurance for as low as $31.50 a month, on average. In fact, our study revealed that women in Frostburg, MD, with an estimated population of 8,667 (2015, latest data), can pay as little as $22 towards their monthly premiums.

Senior Drivers in Maryland

A 68-year-old male driver in Maryland with 45-year driving experience can expect his yearly average premiums to amount to:

  • $552.4 for state minimum coverage
  • $910.8 for basic full coverage
  • $1222.8 for premium full coverage

Minimum car insurance requirements

When you register your car in the State of Maryland, you have to bring along the Maryland Insurance Certification your insurer provided you with, complete with your signature and together with your registration application. In other words, without this proof of insurance, you cannot have your automobile registered.

Your auto insurance policy should comprise of three main types of coverage in order for it to be in accordance with the MD laws. These include liability coverage, uninsured/underinsured motorist coverage, and Personal Injury Protection (PIP) coverage.

Liability insurance helps cover bodily injuries or property damages you have caused during an accident. In Maryland, you need to have a minimum of $30,000 bodily injury coverage per person, a minimum of $60,000 total bodily injury coverage per accident, and a minimum of $15,000 for property damage coverage.

As for the uninsured/underinsured motorist portion of your policy, the same minimums apply.

The third type of must-have coverage in your Maryland car insurance program – Personal Injury Protection (PIP) – also known as no-fault coverage, helps pay for injuries you have sustained caused by another party. In MD, you should have a minimum PIP coverage of $2,500.

Aside from these three requirements, you can purchase a variety of other coverage types, including collision insurance, comprehensive insurance, towing, and labor, as well as a rental car.

Violations and penalties 

Another car insurance law distinctive to Maryland revolves around fines and penalties. In the state, those caught operating a motor vehicle without insurance (or lacking in) will have to pay a fine of $150 for a duration of 1 up to 30 days. In the event that the authorities assess a fine, violators will have to spend an additional $7 per day in fines, although the penalty should not exceed $2,500.

Suspension of the car registration will also take place, until the day the offender shows proof of insurance. In addition, instead of a reinstatement fee, penalized individuals would have to pay a restoration fee of up to $25 for the registration of their automobiles.

Driving safety in Maryland

The Centers for Disease Control and Prevention (CDC) reports that 91% of drivers and front-seat passengers wear seatbelts in Maryland. This means the state has a higher rating compared with the national average of 86%.

A 2015 National Highway Safety Administration study pointed out that 513 cases of driving fatalities occurred in MD that year. 31% (159 cases) were caused by alcohol-impaired driving.

This number, according to CDC, makes the state’s overall vehicle occupant death rate at 5.3 per 100,000 residents.

Final thoughts

You should not risk yourself or your finances just because you think you will not get involved in an accident. Instead, consider an extensive car insurance policy as an investment that will protect you from legal liabilities and even cover your medical expenses in the event of such an unfortunate incident.

Source: StatistaInsurance Information Institute