The parts of the personal auto policy are covered in the national personal auto guide: liability, medical payments, uninsured motorists, physical damage and duties after a loss. Maryland is a fault (tort) state that adds PIP to every policy unless it is waived. Maryland also keeps the strict contributory negligence rule. Required security is set in the Transportation Article (§ 17-103), and the coverage rules are in Insurance Article Title 19. Drivers who can't get coverage go to the Maryland Automobile Insurance Fund (MAIF).

Required security (Transp. §§ 17-103 to 17-107)

Minimum liability: 30/60/15 — $30,000 per person and $60,000 per accident for bodily injury, and $15,000 for property damage.

Required security must also include:

• PIP, unless waived or rejected
• uninsured/underinsured motorist coverage

Registration:

• The MVA won't issue or transfer a registration without evidence of security.
• If coverage lapses, the registration is automatically suspended until security is replaced and penalties are paid.

Lapse penalties (§ 17-106):

• $200 per vehicle for the first 1 to 30 days
• $7 per day from day 31
• a maximum of $3,500 per violation in 12 months

Driving uninsured (§ 17-107). A first offense can bring up to 1 year in jail, a fine of up to $1,000, or both.

Unpaid judgments (§ 17-202). If an auto accident judgment isn't paid within 30 days, the creditor may send it to the MVA for enforcement.

Personal injury protection (Ins. §§ 19-505 to 19-508)

Benefits. PIP pays without regard to fault and without regard to collateral sources:

Who's covered. The first named insured and resident family members, permissive users, guests and passengers, and pedestrians or cyclists struck by the insured vehicle.

Waiving PIP:

• PIP is included unless the first named insured waives it in writing on the Commissioner's form.
• The waiver binds each named insured, listed driver, and household family member 16 or older.
• An insurer may not refuse to insure someone who won't waive PIP.

Exclusions. PIP may exclude injuries from:

• intentionally causing the accident
• knowingly using a stolen vehicle
• committing a felony

Insurers may exclude or limit PIP economic loss benefits on motorcycles, mopeds and scooters.

Claims and payment:

• Benefits are paid within 30 days of proof. Overdue payments bear 1.5% per month.
• A policy may require a PIP claim to be filed within at least 12 months of the accident.
• The insurer may not raise the premium because of a PIP claim.
• The PIP insurer has no subrogation against the at-fault party.

Uninsured and underinsured motorist (§§ 19-509 to 19-511)

• Every policy must include UM coverage for bodily injury, property damage (including loss of use) and wrongful death.
• Limits. UM limits must equal the liability limits unless the first named insured makes an affirmative written waiver on the required form. UM may not exceed the liability limits.
• Insolvent insurers. A vehicle insured by an insolvent insurer counts as uninsured.
• Standard UM is reduced by what the at-fault driver's liability insurer pays.
• Enhanced UIM (§ 19-509.1):
  • It is not reduced by the at-fault driver's liability payment.
  • For new private passenger policies issued on or after July 1, 2024, enhanced UIM must be provided unless the first named insured waives it in writing and keeps standard UM.
• Settlements with the at-fault driver (§ 19-511):
  • The UM insurer gets the at-fault insurer's limits settlement offer by certified mail and has 60 days to consent or refuse.
  • If it refuses, it pays the offer amount within 30 days to preserve subrogation.
• A policy clause requiring binding arbitration of UM disputes has no legal effect.

Other coverage rules

• Collision deductibles. Insurers must offer collision deductibles from $50 to $250, in $50 steps (§ 19-512).
• Rental cars. Collision coverage extends to a car rented for 30 days or less, and the insurer tells the insured a collision damage waiver isn't needed.
• Family member claims. When liability limits exceed the minimum, the insurer must offer the same limits for claims by family members (§ 19-504.1).
• Named driver exclusion (Ins. § 27-609). Instead of cancelling, nonrenewing or surcharging a multi-driver policy because of one driver's record, the insurer must offer to exclude that named driver.
• Ride-hail. Personal auto insurers may exclude transportation network (ride-hail) use with written notice (§ 19-517).
• Credit history may be used to rate a new auto policy, but not to cancel, nonrenew or raise a renewal premium (§ 27-501(e-2)).
• Subrogation disputes. Physical damage subrogation between insurers goes to intercompany arbitration (§ 19-514).

Cancellation and nonrenewal (§§ 27-613, 27-614; § 12-106)

Underwriting period. A new policy has a 45-day underwriting period:

• The insurer may cancel during it with 15 days' notice stating the actual reason, or 10 days for nonpayment.
• If it finds a material risk factor but the risk is still acceptable, it recalculates the premium. An insured who then cancels gets a pro rata refund.

After the underwriting period, midterm cancellation is limited to:

• fraud or material misrepresentation
• threats to public safety
• increased hazard
• nonpayment
• license or registration suspension tied to the driving record

Notices:

• Cancellation (other than for nonpayment) or nonrenewal needs at least 45 days' notice by certified mail, or consented electronic delivery.
• The notice must mention the right to replace coverage through MAIF and the right to protest to the Commissioner.
• A protest within 30 days stays the action, and coverage continues pending a decision.

Other rules:

• Premium increases. An increase because of the insured's accident or violation needs 45 days' notice.
• Three-year limit. No cancellation, nonrenewal or refusal may be based on an accident, claim or violation more than 3 years old (§ 27-501(d)).
• Prior MAIF coverage. An insurer may not refuse an applicant solely because they were previously insured by MAIF.

Maryland Automobile Insurance Fund (Ins. Title 20)

Purpose. MAIF provides required auto security to eligible people who can't get it from private insurers.

Who is eligible:

• someone rejected by at least two private insurers for reasons other than nonpayment
• someone cancelled or nonrenewed for reasons other than nonpayment
• someone uninsured for 12 continuous months

Appeals. A rejected MAIF applicant may appeal within 10 days.

Commissions. MAIF producers earn 10% to 15% on private passenger auto.

Leaving MAIF. After 3 years with MAIF and no violations or chargeable accidents, a driver can't be refused by private insurers solely for that history.

Uninsured division. MAIF pays qualified people hurt by uninsured drivers up to $30,000/$60,000/$15,000. Notice of the claim is due within 180 days.

Private insurers must belong to the Industry Automobile Insurance Association (§ 20-402).

Fault rule

Maryland follows contributory negligence. A claimant who is even slightly at fault generally recovers nothing. The Court of Appeals declined to adopt comparative negligence in Coleman v. Soccer Ass'n of Columbia (2013), leaving any change to the legislature.

Common exam traps

• Maryland's minimums are 30/60/15, plus PIP (unless waived) and UM.
• PIP is $2,500 minimum and pays 85% of lost income. There is no subrogation, and a PIP claim can't raise the premium.
• UM equals liability limits unless waived in writing. Enhanced UIM isn't reduced by the at-fault driver's payment.
• The underwriting period is 45 days. Cancellation and nonrenewal need 45 days' notice by certified mail.
• MAIF is the residual market.
• Under contributory negligence, any fault bars recovery.