3.1 Maryland Auto Insurance Requirements

Maryland is a no-fault state with mandatory minimum coverage requirements enforced by the Maryland Motor Vehicle Administration (MVA).

Minimum Liability Coverage: 30/60/15

Required Coverages

Personal Injury Protection (PIP) - Mandatory

Maryland's no-fault system requires PIP coverage:

PIP pays for:

• Medical and hospital expenses
• Lost wages (up to 85% of actual loss)
• Replacement services (household help)
• Funeral expenses (limited)

Uninsured Motorist (UM) Coverage - Mandatory

Underinsured Motorist (UIM) Coverage - Optional

• Not required in Maryland
• Recommended for additional protection
• Covers gap between at-fault driver's limits and your damages

Maryland No-Fault System

How No-Fault Works

1. First-Party Coverage: PIP pays your medical expenses first
2. Threshold for Lawsuit: May sue at-fault driver for serious injuries
3. Modified System: Maryland uses "add-on" no-fault with tort rights preserved

Verbal Threshold for Lawsuits

Injured parties may pursue tort claims for:

• Death
• Permanent injury or disfigurement
• Medical expenses exceeding PIP limits
• Pain and suffering (no dollar threshold)

Maryland Comparative Fault Rule

Maryland follows contributory negligence (one of few states):

Critical Note: Maryland is one of only five jurisdictions using pure contributory negligence. If you are even 1% at fault, you cannot recover damages from the other driver.

Proof of Insurance Requirements

What Drivers Must Carry

• Insurance identification card (paper or electronic)
• Current policy declarations page (upon request)
• Electronic proof accepted on smartphones

Verification System

Maryland uses an electronic insurance verification system:

• Insurers report coverage to MVA
• Random audits of registered vehicle owners
• Continuous monitoring for lapses

Penalties for No Insurance

Exam Tip: Maryland requires 30/60/15 liability limits, which are higher than many neighboring states. PIP is mandatory at $2,500 minimum, and Maryland follows pure contributory negligence - one of the strictest fault rules in the nation.

Maryland is a tort state with mandatory PIP, not a true no-fault state

A precise but heavily tested point: Maryland is not a true no-fault state. It is a tort (at-fault) state that adds on mandatory Personal Injury Protection (PIP) as a first-party medical/wage benefit. Unlike true no-fault states, Maryland places no threshold on the right to sue - an injured party can pursue the at-fault driver for any damages, and PIP simply pays the insured's own early medical bills and lost wages regardless of fault. Treat any answer that calls Maryland a "no-fault state" with caution; the accurate description is add-on PIP with full tort rights preserved.

Required limits and the PIP waiver

Maryland mandates 30/60/15 liability ($30,000 per person / $60,000 per accident bodily injury, $15,000 property damage), plus Uninsured/Underinsured Motorist at the same limits and PIP of at least $2,500 per person. PIP and UM are automatically included but can be limited or, for PIP, waived in writing by the named insured (the waiver binds household members 16 and older). UM coverage may only be reduced or rejected in writing down to the minimums - the insurer must obtain that written election or the higher limit stands.

PIP pays medical expenses, up to 85% of lost wages, and limited funeral and replacement-services costs without regard to fault.

Contributory negligence - one of the strictest fault rules

Maryland is one of only a handful of jurisdictions still applying pure contributory negligence: if the claimant is even 1% at fault, recovery is completely barred. Compare this to comparative-negligence states that merely reduce the award by the plaintiff's percentage. Worked contrast: a driver 30% at fault with $100,000 damages recovers $70,000 in a pure-comparative state but $0 in Maryland. The harshness is softened only by the narrow last clear chance doctrine. This rule makes liability defense aggressive in Maryland and is a near-certain exam item.

Financial responsibility and penalties

Maryland verifies coverage electronically through the MVA: insurers report policies, and lapses trigger penalties. Driving uninsured can bring fines, registration suspension, reinstatement fees, and an SR-22-style filing requirement. The exam pairs these enforcement facts with the coverage minimums, so remember the chain: mandatory 30/60/15 + PIP + UM, electronic verification, and stiff penalties for a lapse.