Insurance is required for every legally registered car in the state. At the time of registration, you will sign an insurance certification proving your financial responsibility.

Ways to Establish Financial Responsibility

Some states have other ways to establish financial responsibility; for instance, by leaving a large deposit with the state. This is not the case in Maryland. The only way to prove financial responsibility is to purchase the minimum amounts of insurance required by the state.

Maryland Liability Insurance Requirements for Private Passenger Vehicles

For liability insurance, you must purchase a minimum of:

• $20,000 for bodily injury per person.

• $40,000 for bodily injury for two people or more.

• $15,000 for property damage.

In addition, you must also have:

• Uninsured motorist coverage, for the same amounts found above. This is basically a duplicate to your own liability insurance, except that it will cover you in case an uninsured person hits you.

• $2,500 of Personal Injury Protection (PIP), for medical expenses related to an accident for your passengers.

There are other types of coverage that might be helpful to have. You should research the different categories and obtain quotes from several insurance companies before you decide on one.

If you're looking for ideas on possible charges, the Maryland Insurance Administration (MIA) provides a examples of what you might need. For example, a homeowner in his 30s will need more coverage to protect his assets than someone in their early 20s who rents an apartment. Young men generally pay higher premiums than young women; the amount goes down as you get older. While no guide can tell you exactly what you will pay or what you will need because every situation is unique, it can give you an idea of what to expect.

Proof of Insurance and Financial Responsibility

Before or at the time you register your car, you must file a form called FR-19 with the Motor Vehicle Administration. This is your proof of insurance. This form:

• Is provided by your insurance company and may be faxed, mailed, or dropped off in-person at the MVA office.

• States that you will maintain the coverage for as long as the car is registered.

The insurance company will contact the MVA if you drop your insurance. If you change providers, you must inform the MVA and send them a new FR-19; otherwise, the MVA will assume you have no insurance at all.

If you get enough points against your license, you will get a letter telling you to re-file the FR-19. This is because your insurance will change to become more expensive.

Penalties for Failure to Maintain Financial Responsibility

If you have no proof of insurance on file, you could face many penalties. Not only could the courts punish you with additional fees, you could also:

• Pay fees of $150 for the first 30 days and $7 per day.

• Get your registration and license plates revoked; it costs $25 to get your registration back.

• Be jailed for a year or pay $1,000 in fines if you have false proof of insurance.

• Be unable to register another vehicle until you pay off all the fines.