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Wednesday, 31 July 2013

Maryland Auto Insurance Required For Vehicle Owners

By Maryanne Goff


The regulations for insuring an automobile in the United States vary by state. Maryland auto insurance laws require every car that is legally registered in the state be insured. When the owner registers the vehicle, he or she must sign a certification that proves their financial responsibility.

While it is possible to prove financial responsibility by making a large deposit with the state in other locations, MD requires drivers to insure the vehicle at the minimum amounts required by state law. This is the only provision available to drivers. Without this owners are in violation of the law.

The state minimums for liability coverage of private vehicles are currently set at 20/40/15. This indicates thousands of dollars of coverage for bodily injury, injuries to two or more individuals in the same accident and property damage. Additionally, owners must have personal injury protection and uninsured motorist's coverage.

Owners may also want to consider additional coverage. Most banks require owners to provide full coverage for financed vehicles. However, once vehicles are paid in full and their value drops the time comes to drop the additional coverage. When an automobile is valued at less than $2000, owners will pay more for coverage than would be collected if the vehicle were a total loss in an accident.

Younger drivers often pay more for those with several years driving experience. Additionally, coverage for female drivers is less than for men. Vehicles covered along with the location it is garaged overnight also affect the cost of the policy. Drivers with poor past driving history will pay more for coverage than those who have no moving violations or accidents. Some companies consider credit rating while others do not. Most carriers offer free quotes that can be used to compare prices to insure one or more vehicles.

To register a vehicle, the driver must include a FR-19 form with the application. The carrier will complete the form and it may be brought in person, mailed or faxed to the department of motor vehicles. If you drop the coverage the company writing the policy is required to notify the department. You must provide a new FR-19 form to prevent the assumption that you no longer are covered.

Drivers who do not insure their vehicles face many penalties. In addition to any fines issued by the courts, vehicle owners may be required to pay fees of $150 for the first month they are not covered. After that the fee goes to $7 daily. The vehicle registration can also be revoked and cost the driver another $25 to reinstate it. Drivers who provide false proof of coverage can be fined $1000 or spend up to a year in jail.

While vehicle owners must have Maryland auto insurance to register their vehicles, the coverage can also protect their own financial future. Homeowners in their thirties typically will want more coverage than individuals in their twenties who have fewer financial resources. Talk with an agent or financial planner in order to determine the proper amount of coverage to purchase for vehicles.




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