Handing your car keys to a friend or family member is a common occurrence. But what happens if they don’t have their own auto insurance? Understanding Maryland’s laws on this matter is crucial for every vehicle owner. Driving without insurance is a serious offense in the state, carrying significant penalties that can impact your finances, driving privileges, and even your freedom.
This guide explains Maryland car insurance laws, the consequences of letting an uninsured person drive your car, and what to do if you are facing charges. Knowing these rules helps you protect yourself from liability and make informed decisions.
Understanding Maryland Car insurance Laws
To legally operate a vehicle in Maryland, the state requires all registered vehicles to be insured. The insurance policy must meet specific minimum coverage amounts. These requirements ensure that there are financial resources available to cover damages in the event of an accident.
Minimum Insurance Coverage in Maryland
Your auto insurance policy must include at least the following liability coverages:
- $30,000 for Bodily Injury Liability: Per person injured in an accident.
- $60,000 for Bodily Injury Liability: Per accident when two or more people are injured.
- $15,000 for Property Damage Liability: To cover damage to another person’s property, such as their vehicle.
In addition to liability coverage, Maryland also mandates uninsured/underinsured motorist (UM/UIM) coverage:
- $30,000 for Uninsured Motorist Bodily Injury: Per person.
- $60,000 for Uninsured Motorist Bodily Injury: Per accident.
- $15,000 for Uninsured Motorist Property Damage: Per accident.
This UM/UIM coverage protects you if you are in an accident caused by a driver who has no insurance or insufficient coverage to pay for your damages. While these are the minimums, you can always purchase higher levels of coverage for greater financial protection.
The Rule in Maryland: Insurance Follows the Car
A key principle of Maryland auto insurance is that the coverage follows the vehicle, not the driver. This is known as “permissive use.” If you give someone permission to drive your car, your insurance policy is considered the primary coverage if they cause an accident.
This means that even if the person driving your car has no insurance of their own, your policy should cover the damages up to its limits. However, relying on this can have significant consequences. If your friend causes an accident, the claim is filed against your policy, which will likely lead to a substantial increase in your insurance premiums.
When Is Letting Someone Drive Your Car a Problem?
Allowing an uninsured driver behind the wheel of your vehicle is risky. You could also face legal trouble for “negligent entrustment.” This occurs if you knowingly allow someone to drive your car who you should have known was unfit to drive.
Examples of negligent entrustment include lending your car to:
- An unlicensed driver.
- A driver with a suspended or revoked license.
- Someone who is clearly intoxicated.
- A driver with a known history of reckless driving.
If the person you let borrow your car causes an accident and you are found guilty of negligent entrustment, you could be held personally liable for the damages. This could lead to a lawsuit and significant financial loss, far beyond what your insurance covers.
Penalties for Driving Without Insurance in Maryland
The consequences for driving without insurance are severe. If you are caught operating a vehicle without the required coverage, the Maryland Motor Vehicle Administration (MVA) and the courts can impose strict penalties.
Administrative Penalties from the MVA
The MVA can enforce several administrative penalties, which include:
- Loss of Vehicle Registration: Your vehicle’s registration can be suspended.
- Confiscation of License Plates: You will be required to surrender your tags.
- Uninsured Motorist Fines: You will face a fine of $150 for the first 30 days of the insurance lapse and $7 for each additional day.
- Registration Restoration Fees: A fee of up to $25 may be required to restore your registration.
- Registration Blocks: You will be barred from registering any new vehicles or renewing existing registrations until all insurance violations are resolved.
Criminal Penalties for Driving Uninsured
Beyond administrative actions, driving without insurance is a misdemeanor crime in Maryland. A conviction can result in:
- Jail Time: Up to one year in jail for a first offense.
- Fines: A fine of up to $1,000.
- License Points: Five points added to your driving record.
The penalties increase for subsequent offenses. These criminal charges create a permanent record that can affect employment and other aspects of your life. An experienced traffic lawyer in Maryland can be essential for navigating these charges and seeking a more favorable outcome.
What to Do If You’re Facing Charges
If you have been charged with driving without insurance or allowing an uninsured driver to use your vehicle, it is vital to take immediate action. The potential consequences are too serious to ignore.
- Do Not Admit Fault: Anything you say to law enforcement can be used against you. Be cooperative, but avoid making statements that could imply guilt.
- Gather Your Documents: Collect any relevant paperwork, including the traffic citation, your vehicle registration, and any proof of insurance you may have had, even if it had lapsed.
- Consult a Traffic Lawyer: The most important step is to seek legal counsel. A knowledgeable attorney can analyze the specifics of your case, identify potential defenses, and represent you in court and with the MVA.
An attorney may be able to negotiate for reduced charges, lower fines, or alternative resolutions that avoid jail time and minimize points on your license.
Protect Yourself with Expert Legal Counsel
Navigating Maryland’s complex traffic laws requires experience and a deep understanding of the legal system. If you are facing charges for an insurance-related violation, you do not have to handle it alone. A skilled traffic defense attorney can advocate on your behalf and work to protect your rights and your future.
At The Law Office of Hillel Traub, we have extensive experience representing clients in traffic violation cases across Maryland. Attorney Hillel Traub’s background as a former Assistant Attorney General for the MVA provides him with unique insight into how these cases are prosecuted. We are committed to building a strong defense tailored to your situation. Contact us today at 410-205-5603 or complete our online form to schedule a free consultation.
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