If you're driving in Maryland, you're navigating one of the more complex auto insurance landscapes in the country. Between mandatory uninsured motorist coverage, optional-but-really-not-optional PIP coverage, and one of the strictest fault rules in America, Maryland's insurance requirements can feel overwhelming. But here's the good news: once you understand what you actually need and why, you can make smart choices that protect both your wallet and your family.
This guide breaks down everything you need to know about auto insurance in Maryland, from the state minimums you're legally required to carry to the coverage options that could save you from financial disaster if the worst happens.
What Auto Insurance Coverage Does Maryland Require?
Maryland law requires every driver to carry minimum liability coverage of 30/60/15. Here's what those numbers mean: $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage. If you cause an accident, this coverage pays for the other driver's medical bills and vehicle repairs—up to those limits.
But Maryland goes further than most states. You're also required to carry uninsured motorist coverage at the same minimums as your liability coverage—at least 30/60/15. This isn't optional. Given that approximately 12% of Maryland drivers don't carry insurance, this requirement makes a lot of sense. If an uninsured driver hits you, your uninsured motorist coverage steps in to pay for your medical expenses, lost wages, and pain and suffering.
Then there's personal injury protection, or PIP. Here's where it gets a bit confusing: Maryland doesn't technically require PIP, but every insurance company must offer you at least $2,500 in coverage. To decline it, you have to sign a waiver. Most drivers accept the coverage because it provides immediate payment for medical bills and lost wages after an accident, regardless of who was at fault. If you're injured and can't work, PIP reimburses 85% of your lost income and even provides a stipend for household tasks you can't perform.
Understanding Maryland's Tort System and Contributory Negligence
Maryland is a tort state, which means the driver who causes an accident is responsible for covering everyone else's damages. That's pretty standard across the country. What's not standard is Maryland's strict contributory negligence rule—and it's a harsh one.
Under contributory negligence, if you're even 1% at fault for an accident, you can't recover any damages from the other driver. Let's say another driver runs a red light and hits you, but you were going 5 mph over the speed limit. If a jury determines you were 2% at fault because of your speed, your injury claim is completely barred. Zero compensation. It's an archaic system that only a handful of states still use, and it makes adequate insurance coverage absolutely critical in Maryland.
This is where your own coverage becomes your safety net. Because you can't rely on being able to sue the other driver, having robust uninsured/underinsured motorist coverage and PIP means you're protected even when Maryland's fault laws work against you.
What Does Auto Insurance Actually Cost in Maryland?
The cost of auto insurance in Maryland varies wildly depending on where you live and drive. On average, full coverage costs around $3,039 per year, or about $253 per month. Minimum coverage runs closer to $1,101 annually, or roughly $92 per month. But those are just averages—your actual rate could be significantly higher or lower.
If you live in or around Baltimore, expect to pay more—Baltimore is the most expensive city in Maryland for car insurance, with full coverage averaging $421 per month. The DC metro area also sees elevated rates due to traffic density and higher accident rates. Drivers in places like Cumberland, on the other hand, might pay as little as $112 per month for full coverage.
Rates have been climbing across the board. Between 2023 and 2024, full coverage costs in the DC region jumped by roughly $719 per year—a 58% increase. That spike is driven by rising vehicle repair costs, more expensive medical care, and an uptick in accident severity. The good news? Maryland's average rates are still below the national average of about $2,697 for full coverage.
Enhanced Underinsured Motorist Coverage: What Changed in 2024
Starting in 2024, Maryland made a significant change to how underinsured motorist coverage works. Enhanced underinsured motorist coverage, or EUIM, switched from an opt-in system to an opt-out system. That means unless you specifically decline it, you automatically have enhanced protection if the at-fault driver's insurance isn't enough to cover your damages.
Here's why this matters: imagine you're seriously injured in an accident caused by a driver who only carries the state minimum of $30,000 per person. Your medical bills alone could easily exceed that, especially if you need surgery or ongoing treatment. With EUIM, your own policy kicks in to cover the gap between what the other driver's insurance pays and what you actually need. Without it, you're stuck with the bill.
This change is consumer-friendly. It ensures more Maryland drivers have adequate protection without having to actively seek it out. If you want to opt out, you can—but most experts recommend keeping this coverage, especially given Maryland's contributory negligence rule.
How to Get the Right Coverage for Your Situation
Meeting Maryland's minimum requirements is one thing. Making sure you're actually protected is another. Here's the thing: $30,000 in bodily injury coverage doesn't go far if you cause a serious accident. A single hospital visit can easily exceed that, leaving you personally liable for the difference. And $15,000 in property damage coverage won't even cover a totaled SUV, let alone multiple vehicles.
Most insurance professionals recommend carrying at least 100/300/100 coverage—$100,000 per person for bodily injury, $300,000 per accident, and $100,000 for property damage. Match your uninsured and underinsured motorist coverage to the same levels. Yes, it costs more, but the difference between minimum coverage and robust coverage is often only $30 to $50 per month—far less than you'd pay out of pocket after a serious accident.
Also consider raising your PIP coverage beyond the $2,500 minimum. PIP can go as high as $50,000, and higher limits mean better protection for your own medical bills and lost wages. Remember, you only have one year from the accident date to file a PIP claim in Maryland, so don't delay if you need to use it.
Finally, shop around. Maryland insurance rates vary dramatically between companies. Get quotes from at least three insurers, and ask about discounts—bundling your auto and home policies, maintaining a clean driving record, taking a defensive driving course, or installing safety features in your car can all lower your premium.
Maryland's auto insurance requirements are designed to protect you in a state with strict fault rules and a significant number of uninsured drivers. Understanding what you're required to carry—and what additional coverage makes sense for your situation—puts you in control. Don't just settle for the minimums. Take the time to build a policy that actually protects you and your family, both legally and financially.
