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.
Average cost of car insurance in Maryland
The National Association of Insurance Commissioners (NAIC) claim 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 coverage1,
- $1796 for basic full coverage2 and
- $2394 for premium full coverage3.
Statistically, young drivers have higher risks of getting into accidents and causing road collisions hence the higher premiums.
Female Drivers in Maryland
Our methodology4 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 and
- $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 data5), can pay as little as $22 towards their monthly premiums.
Senior Drivers in Maryland
A 68-year-old male driver in Maryland with a 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 and
- $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 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 the Maryland. This means the state has a higher rating compared with the national average of 86%.
This number, according to CDC, makes the state’s overall vehicle occupant death rate at 5.3 per 100,000 residents.
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.
|1||State minimum coverage includes the minimum liability insurance limits required in your state but excludes the following:
|2||Basic full coverage includes:
|3||Premium full coverage includes:
|4||Methodology: To achieve accurate results we obtained estimates for 10 cities in the state: 5 of the largest cities and 5 randomly picked smaller cities. For each city, we collected premiums for 3 levels of coverage: state minimum coverage, basic full coverage and premium full coverage. We used 3 different driver profiles for the case studies. For the young driver profile we used a 20-year-old single male or female with 1 year driving experience. Second, the profile fit that of a 35-year-old married female with 12 years of driving experience. The last profile we used in our studies is a male senior driver who was 68-year-old with 45 years of driving experience. The vehicle we used for all three driver profiles was a 2012 Honda Accord EX.|
|5||Latest data: The U.S. census is conducted every 10 years as per requirement of the United States Constitution. The 23rd edition and the latest data is the 2010 United States Census. Source: https://en.wikipedia.org/wiki/2010_United_States_Census|