Commercial Auto Insurance Minimum Requirements in Maryland

Determine the Required Amount of Coverage

Should you decide that you need commercial insurance, you'll need to discuss the following with an insurance agent or representative:

• How much the vehicles weigh

• Who owns them

• How they're used

But, you may also talk about issues such as how much the vehicles are worth, what they'll carry, what sort of special equipment they have, and other such matters.

No matter what sort of coverage you decide on, you'll need to have at least this much protection to comply with state requirements:

• $20,000 of bodily injury coverage for injuries or death to one person in an accident.

• $40,000 of bodily injury coverage for injuries or deaths occurring to more than one person in an accident.

• $15,000 of property damage coverage per accident.

• Uninsured motorist coverage (same minimum limits as above).

• Personal injury protection (PIP) of $2500.

Remember, you can contact the MVA for additional assistance with commercial coverage requirements.

Purchase a Commercial Policy

After you've decided on the type of coverage, you'll be faced with another decision: what carrier to choose. You can select from smaller companies that specialize in commercial insurance to mammoth insurers that offer an array of policies.

Choosing wisely could save you considerably on your premiums, so it's best to comparison shop online (or by phone) to find the best rates. But, be aware your current insurance carriers may offer you a discount if you take out the policy with them.

insurance Company Notification

The MVA requires your carrier to notify the state as soon as you cancel your policy; however, your new carrier isn't required to alert the MVA when you begin coverage with them. So, the MVA might ask you for proof of your current coverage.

Also, if you have a blanket policy covering numerous vehicles, be sure the MVA has the vehicle identification number (VIN) for each vehicle on file.

Proof of insurance and Financial Responsibility

Once you've obtained your policy, there might be times when you're asked to verify your coverage. During these situations, only a Maryland insurance Certification (FR-19) will suffice; neither your insurance card nor your insurance policy is acceptable.

Penalties for Failure to Maintain Financial Responsibility

What happens if you have no proof of insurance when required to present it?

You possibly could face:

• A license plate and vehicle registration suspension.

• An uninsured motorist penalty fee (for each lapse) of $150 for the first 30 days ($7 per day after that).

• A $25 registration restoration fee.

• A maximum fine of $1,000 and up to a one year in jail (if you provided false evidence of insurance).

Additionally, you may not be able to renew a registration or apply for a new registration on other vehicles.

Of course, if you're liable for an accident when you're without insurance, you're responsible for paying the costs involved and may be vulnerable to lawsuits stemming from the accident.