The Law That Says We Need to Have Car Insurance in Maryland

Below is the state that requires all Maryland drivers to carry car insurance. Clearly, we are not required to carry much insurance. But we have to have insurance.

So, under our law, it is illegal to drive any motor vehicle without insurance or taking out a bond – proof of financial responsibility – which is something that pretty much only taxis in Baltimore do.

Transportation Code § 17-103. Form and minimum benefits of security; annual assessment.

1. 1. Required form; annual assessment. —

1. 1. Except as provided in paragraph (2) of this subsection, the form of security required under this subtitle is a vehicle liability insurance policy written by an insurer authorized to write these policies in this State.
   2. The Administration may accept another form of security in place of a vehicle liability insurance policy if it finds that the other form of security adequately provides the benefits required by subsection (b) of this section.
   3. The Administration shall, by regulation, assess each self-insurer an annual sum which may not exceed $ 750, and which shall be used for actuarial studies and audits to determine financial solvency.
2. Required minimum benefits. — The security required under this subtitle shall provide for at least:
   1. The payment of claims for bodily injury or death arising from an accident of up to $ 20,000 for any one person and up to $ 40,000 for any two or more persons, in addition to interest and costs; [new version of the statute is $30,000/$60,000]
   2. The payment of claims for property of others damaged or destroyed in an accident of up to $ 15,000, in addition to interest and costs;
   3. Unless waived, the benefits described under § 19-505 of the Insurance Article as to basic required primary coverage; and
   4. The benefits required under § 19-509 of the Insurance Article as to required additional coverage.

Related

• More information on accident claims in Maryland here
• Swartzbaugh v. Encompass, which discusses this statute

Insurance Requirements in Other States

• New York
• Ohio
• Florida
• Texas
• California