Maryland Increases Fines for Uninsured Drivers

Maryland drivers will soon face steep penalties for driving without the state’s minimum required auto insurance. As of July 1, a 30-day lapse in coverage will cost drivers $200. Each additional day a driver goes without insurance will cost another $7 — up to $3,500.

“These new laws will protect all drivers on the roads in our region from the risks and costs associated with accidents involving uninsured vehicles,” Al Redmer, Jr., executive director of Maryland Auto Insurance, stated in a release.

About 15% of Maryland’s drivers are uninsured — slightly above the national average — according to the Insurance Research Council.

Insurance may be cheaper than fines

The costlier penalties mean paying for minimum coverage could be much cheaper than accruing fines. Previously, the fine for driving uninsured was just $150.

“At the current rate, it is often cheaper for some drivers to pay the fine than to get insurance,” said Redmer. “This law changes that, and it is an important step in enforcing Maryland’s auto insurance requirement and encouraging drivers to practice safe driving habits, which include obtaining the insurance that is required.”

The maximum penalty per violation will increase from $2,500 to $3,500 for 12 months of coverage delinquency. Driving without insurance in Maryland can also lead to license suspension and vehicle impoundment.

The average cost of liability-only car insurance in Maryland is $2,075 per year, according to Insurify data. The Maryland Motor Vehicle Administration also requires drivers to carry some uninsured motorist coverage.

City	Average Monthly Cost: Liability Policy	Average Annual Cost: Liability Policy
Baltimore	$292	$3,504
Columbia	$129	$1,548
Frederick	$168	$2,016
Silver Spring	$166	$1,992

Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

Maryland still faces high car insurance rates

Maryland is the eighth-most-expensive state for auto insurance, according to Insurify’s car insurance report. And its annual liability-only insurance premiums are about 67% higher than the national average.

Maryland is the sixth-most-densely populated state, which increases the risk of vehicle theft, accidents, and expensive claims for residents.

Baltimore has the highest premiums in the state, spurred by its high population density and low median income. Liability-only premiums in Baltimore are nearly three times the national average.

Though Maryland’s median household income is above the national average, at $108,200, Baltimore’s median income is only $55,198. Drivers with poor credit pay about 21% more for car insurance than those with good credit, according to Insurify data.

What’s next: Where the revenue will go

About 30% of the revenue from fines will go for administration. The rest will support theft prevention, driver’s education, and insurance.

Maryland Auto Insurance receives the largest allocation, with some funds exclusively allocated for the Uninsured Division. The state’s auto insurer of last resort sells insurance to drivers who’ve had policies canceled or people who’ve been denied coverage by two or more insurers.

The legislation also allocates revenue to driver education in public schools, vehicle theft prevention, safe schools, and state-aided institution field trip funds.

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