Best Car Insurance in Maryland

No, you cannot insure a car with a salvage title in Maryland. Salvage vehicles are cars that have been declared a total loss, meaning they're too damaged to be worth repairing and cannot be driven legally. As a result, no legitimate car insurance company writes policies for them.

Although insurance companies in Maryland won't insure a car with a current salvage title, you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. If it's declared safe to drive, the DMV will issue the car a corrected title. Several insurance companies, including Allstate and Geico, sell policies to vehicles with a corrected title.

Keep in mind that some insurers will only sell liability insurance for corrected cars, meaning that they won't pay for any physical damage to the vehicle. Even if you are able to get collision and comprehensive insurance, your policy may not cover the full value of the car if it's totaled again.

No, personal injury protection is not required in Maryland – it is optional. Maryland drivers are automatically offered $2,500 in PIP insurance, which covers medical expenses and lost wages within three years of an accident, but they can reject the coverage if they choose.

Below, we provide a quick overview of Maryland's PIP policies along with stats illustrating why the coverage is worthwhile.

PIP Insurance in Maryland at a Glance

Drivers in Maryland who do not reject PIP coverage must file PIP claims no more than one year after the date of a crash. However, the benefits may last for up to three years after the accident. During this period, PIP will cover medical, ambulance, and funeral bills, plus reimbursement of 85% of the policyholder's lost income.

The MVA insurance lapse statute of limitations is unlimited (Maryland Motor Vehicle Administration penalties for driving uninsured are not subject to a statute of limitations). Because MVA insurance lapse charges are penalties owed to the state, not private debts, drivers can continue to be penalized for failing to pay after more than three years – the standard statute of limitations for debts in Maryland. In fact, Maryland is notorious for sending bills for driving without insurance years after the lapse. Uninsured drivers in Maryland can have fees assessed, have their license plates confiscated, and/or be prohibited from registering another vehicle until all debts have been paid.

Failing to address fines can have serious consequences, especially since unpaid debts are transferred to the Central Collection Unit (CCU). The CCU is the State of Maryland's debt collection agency, and it's important to note that it has a broader range of powers than a private agency. If you don't pay your fines, the CCU can intercept your tax refund and subtract your outstanding balance. Even if you have insurance now, if you previously drove uninsured, you violated the law at that time and can be penalized accordingly.  

With that being said, you have several options if you've been fined by the MVA for an insurance lapse and are wondering about the statute of limitations.

Responding to MVA Insurance Lapse Fines

• If the notice was issued in error, contact the MVA and try to provide proof that you had insurance or no longer had the car at the time. Some drivers have noted that insurance companies don't retain records forever, so if your insurer doesn't have your paperwork anymore, look for alternate proof or have your insurer contact the MVA. For example, if you sold the car in question or moved to another state, provide the deed of sale or an out-of-state registration.
• If you did not have insurance during the relevant period, pay the fine or establish a payment plan within your budget. If you are still uninsured, remember that the MVA fine increases daily after the first 30-day period, so it's best to take immediate action.
• Look for debt forgiveness opportunities, like the 2019 Fine Fix program. Through this program, Maryland residents could have 80% of their uninsured driving fines forgiven. Drivers could only sign up from July through December of 2019, but keeping an eye out for similar programs in the future could help your wallet.
• Lying about your insurance history is never smart, particularly since Maryland might require a so-called FR-19 form as proof of insurance if its records indicate you don't have coverage. Insurance companies need to file an FR-19 for you, meaning you can't easily avoid this requirement. Plus, providing false evidence of insurance can even result in jail time, so it's best to contact the MVA to dispute or pay the fees.

Drivers who received MVA insurance lapse notices have reported the most success with these tactics, rather than ignoring the notice. But if you're struggling to pay for car insurance, you should also compare the best cheap car insurance policies in Maryland.

Insurance companies in Maryland have 30 working days  to settle a claim after it is officially filed. Maryland insurance companies also have specific timeframes in which they must acknowledge the claim and then decide whether or not to accept it, before paying out the final settlement.

Insurance Claim Timeline in Maryland

• 15 working days to acknowledge the claim and send the policyholder instructions and paperwork, including proof-of-loss forms, which serve as a sworn statement from the policyholder about the scope of the damage or injuries.

• 15 working days to make a decision on the claim and submit final payment. This timeframe begins once the insurance company receives completed proof-of-loss forms.

There are several factors that can affect exactly how long it takes for an insurance company to settle a claim. For example, claims involving serious or multiple injuries take longer to settle. Additionally, poor communication between the driver, insurance company, and insurance adjuster can slow down the process.

Still, you are entitled to an efficient settlement. If you think that your insurance company is violating the law or operating unethically, you can file a “bad faith” lawsuit, which may award you the original settlement amount with added interest and penalties.

Yes, you need uninsured motorist property damage insurance in Maryland. Drivers in Maryland need to carry at least $15,000 in uninsured motorist property damage (UMPD) coverage per accident as a part of the state's minimum car insurance requirements.

Uninsured motorist property damage insurance pays to repair or replace your car if you're involved in an accident caused by an uninsured driver. UMPD also covers accidents caused by underinsured drivers. In that case, you would file a UMPD claim if your expenses exceed the at-fault driver's property damage liability limits.

To learn more, check out WalletHub's guide to uninsured/underinsured motorist insurance.