In the USA, each individual state is responsible for setting the requirements for vehicle owners in proving financial responsibility. Maryland auto insurance laws require every vehicle to be insured before it is registered. To register the vehicle with the state, owners must provide financial responsibility documentation.
Although the drivers in some locations are allowed to prove their financial responsibility with a cash deposit left with the state, MD does not allow this. The only acceptable proof is insuring vehicles at the minimum requirements. There are no other provisions.
The liability coverage requirements for private vehicles are 20/40/15. This indicates coverage in thousands of dollars for bodily injury, injury to two or more persons and for property damage. In addition, the owner must purchase uninsured motorist coverage and personal injury protection, that covers accident related medical injuries to passengers in your car.
The owner may want to buy additional kinds of coverage. With financed vehicles, banks often require full coverage be in place. However, as the vehicle is paid in full and depreciates in value, the owner may want to drop the additional coverage. Vehicles valued at less than $2000 often cost more to fully insure than drivers would collect in an accident where the car was a total loss.
Premiums are usually higher for younger drivers than those with more experience. In addition, women usually pay less for coverage than men. The vehicle one owns and the zip code where it is garaged overnight all figure into the policy cost. Some companies consider the customer’s credit rating while others do not. If an owner has a good score, he or she may qualify for lower premiums than if the score is not considered. Most carriers provide free quotes that are useful in comparing prices.
The FR-19 form is the driver’s proof of coverage. The insurer will provide the form which can be given to the stat in person, mailed or faxed. If coverage is dropped, carriers are required to make a report to the state. Additionally, owners should file a new FR-19 any time they change carriers, otherwise the department may assume a vehicle is not covered, which can cause many difficulties for a driver.
Not insuring a vehicle can lead to penalties. In addition to the fines the court may issue, the owner of the automobile may be required to pay $150 for the first month the car is not insured. If coverage is still not purchased, the fee goes to $7 per day. The automobile registration can also be revoked costing $25 for reinstating. If a driver gives false proof of coverage, he may be fined up to $1000 or be imprisoned for up to a year just for the falsified document.
Before attempting to register a vehicle, drivers should buy Maryland auto insurance. This coverage protects one’s financial future. Homeowners in their mid-thirties need additional coverage when compared to those fresh out of college. A financial planner or agent can help consumers determine the right amount of coverage to meet their needs at a price that is affordable and meets their budget.
When you are looking for dependable Maryland auto insurance, visit the web pages at www.baltimoreinsurancenetwork.com today. You can see details on terms and rates at http://www.baltimoreinsurancenetwork.com now.
