Auto insurance in Maryland is considerably more expensive than it is throughout other areas of the United States. Situated in the mid-Atlantic region of the country, the average cost of an auto insurance policy in Maryland during 2009 was $2,295. Compared to the national average of $1,735, this figure is $560 higher and represents an increase of 15% on the comparative period a year earlier. The varied topography of the Old Line state has a significant influence on these figures.
Maryland follows the familiar Tort system used in a large number of US states and mandatory coverage is set by the Maryland Department of Motor Vehicles. All drivers are legally obliged to carry the following levels of minimum coverage before taking a vehicle on the road:
- $20,000 worth of bodily injury liability per person
- $40,000 worth of bodily injury liability per accident
- $15,000 worth of property damage liability
- $20,000 worth of protection against uninsured or underinsured drivers per person
- $40,000 worth of protection against uninsured or underinsured drivers per accident
- $15,000 worth of uninsured or underinsured motorist property damage
- $2,500 of personal injury protection
These extensive levels of auto insurance coverage offer blanket protection for all potential liabilities although there are other add-ons which can be considered when purchasing a property. Collision damage cover is advisable to cover the cost of repairs to a vehicle while comprehensive cover is particularly useful for owners of new cars as outstanding loans secured against the vehicle will usually be paid off if it is declared to be a total loss in a road traffic accident.