Maryland Auto Insurance Requirements For Drivers
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.
Although the drivers in some locations are allowed to prove their financial responsibility with a cash deposit left with the state, MD does not allow this. The only acceptable proof is insuring vehicles at the minimum requirements. There are no other provisions.
The law also sets the minimum amount of coverage required for a private vehicle to 20/40/15 currently. This number represents the thousands of dollars in coverage required for bodily injury, injuries to more than one individual in the same accident and damage to property, respectively. In addition, the law requires personal injury protection along with uninsured motorist coverage.
Drivers may also choose to purchase other types of coverage. When a vehicle is financed, the bank may require a full coverage policy. However, once the vehicle is paid in full and its value drops below $2000, many owners may choose to drop coverage to the state minimums. When vehicles depreciate to this level, the owner often pays more for full coverage each year than the value of the car.
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.
The FR-19 form is the driver's proof of coverage. The insurer will provide the form which can be given to the stat in person, mailed or faxed. If coverage is dropped, carriers are required to make a report to the state. Additionally, owners should file a new FR-19 any time they change carriers, otherwise the department may assume a vehicle is not covered, which can cause many difficulties for a driver.
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.
Although car owners must have Maryland auto insurance to register a vehicle, the coverage is in their best interest as it protects their financial futures. Homeowners in their thirties or above will want more than the state minimum liability coverage. Visit with a financial planner or agent in order to decide the amount of coverage you would like to purchase in order to protect your finances and vehicle.
Although the drivers in some locations are allowed to prove their financial responsibility with a cash deposit left with the state, MD does not allow this. The only acceptable proof is insuring vehicles at the minimum requirements. There are no other provisions.
The law also sets the minimum amount of coverage required for a private vehicle to 20/40/15 currently. This number represents the thousands of dollars in coverage required for bodily injury, injuries to more than one individual in the same accident and damage to property, respectively. In addition, the law requires personal injury protection along with uninsured motorist coverage.
Drivers may also choose to purchase other types of coverage. When a vehicle is financed, the bank may require a full coverage policy. However, once the vehicle is paid in full and its value drops below $2000, many owners may choose to drop coverage to the state minimums. When vehicles depreciate to this level, the owner often pays more for full coverage each year than the value of the car.
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.
The FR-19 form is the driver's proof of coverage. The insurer will provide the form which can be given to the stat in person, mailed or faxed. If coverage is dropped, carriers are required to make a report to the state. Additionally, owners should file a new FR-19 any time they change carriers, otherwise the department may assume a vehicle is not covered, which can cause many difficulties for a driver.
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.
Although car owners must have Maryland auto insurance to register a vehicle, the coverage is in their best interest as it protects their financial futures. Homeowners in their thirties or above will want more than the state minimum liability coverage. Visit with a financial planner or agent in order to decide the amount of coverage you would like to purchase in order to protect your finances and vehicle.
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posted by Vittoria @ July 30, 2013
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