Encouraging Maryland Auto Insurance
Maryland is among the highest states in auto insurance, at about $500 more annually than the national average. However, the state is working to lower the costs as much as it can. There are fines and penalties if an individual is found to be without insurance. When you first purchase your liability, you are required to fill out a form, FR-19, and give it to the Department of Motor Vehicles. This is kept on record and used as proof of your insurance. If you choose at any time to not pay your insurance costs or renew your insurance, the company will notify the DMV and they will assume that you do not have the insurance that you should. The costs for not having Maryland auto insurance can be quite monumental. For the first thirty days, you will be charged $150. Then, for each day afterwards, you will be charged an additional $7. These fees will accumulate until you buy new insurance and pay off the bill. You can also be fined and jailed if you lie about your insurance. The state of Maryland has also created a Maryland Automobile Insurance Fund to help people who are unable to purchase insurance through any other agency. This fund is ruled by the state and answers to the Legislature of Maryland.
What are the reasons for Maryland Auto Insurance?
You may think that this is a lot of insurance to be required. While this is true and many people feel the pinch in their pockets, there is a reason for this. Maryland law requires that someone be found at fault for an accident and then pay the costs of the accident. This is where your liability insurance comes in. On the other hand, many people are found to be without insurance far too often and unable to pay the costs of an accident. In this case, your UM and PIP chip in to help you, the individual not at fault, so that you are not left without any coverage. The government wants to be sure that all law-abiding citizens who have purchased Maryland auto insurance are covered, even when someone else chooses to disobey the law.