Maryland drivers are feeling the pinch of rising insurance rates – and this can be especially difficult around the holiday season. Traditionally, Americans spend the most money around the holidays, which can add to financial strain. Insurance costs are increasing at a time when Maryland residents are also struggling with higher prices for groceries, gas, and other essentials. When faced with hard decisions about financial priorities, auto insurance is often one of the bills that is neglected for higher-priority necessities. However, driving uninsured has significant financial risks.
Drivers who fail to meet Maryland’s auto insurance requirements face uninsured penalties from the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA). For the first 30 days without insurance, there is a $200 penalty fine. For every day after that, an additional $7 penalty is added. These penalties can add up quickly. Over the course of a year, the maximum uninsured driver penalty amount is $3,500 – per vehicle!
In many cases, car insurance costs less than the annual penalty for driving without insurance. Having insurance protects you financially in the event of an accident. Additionally, maintaining continuous coverage can help you avoid higher premiums and potential complications when seeking insurance in the future.
The consequences of driving uninsured can include legal ramifications as well. A driver who is at fault for an accident can be held personally liable for the damages to any other vehicles or property and/or any bodily injuries resulting from the accident. And if a lawsuit arises from the accident, the coverage provided by insurance policies includes legal representation by defense attorneys who are provided by the insurance company. Without insurance, this protection is not available.
Additionally, if a driver is involved in an accident while driving someone else’s car, they will not be covered for medical bills or lost wages if they do not have their own Personal Injury Protection (PIP) coverage.
Rather than dropping insurance, drivers can explore ways to reduce costs. Consult an insurance professional who can help you explore options to lower your premiums. One item they may recommend is raising your deductible. While this can lower your monthly payments, you’ll also pay more out-of-pocket in the event of an accident. You can drop comprehensive and collision coverage if you own your vehicle outright. However, this means you’ll be responsible for any damage to your car. Owning a less valuable vehicle can also reduce insurance costs, especially if you can pay it off outright, eliminating the need for comprehensive and collision coverages.
If you decide to cancel your auto insurance, it’s crucial to stop driving your vehicle and return your license plates to the MDOT MVA. Relying on public transportation can be a viable option.
With Maryland Auto, you can rest assured knowing you’ll be covered and fully within the law. An insurance provider can make sure that you are getting the proper coverage for your needs and financial situation. You can find an Authorized Maryland Auto Provider near you or get a quote at www.mymarylandauto.com.
Maryland Auto Insurance has helped Maryland residents with their insurance needs for over 50 years, regardless of credit, driving record, or driving experience. If you’ve been turned down or canceled by other insurance companies, Maryland Auto will cover you. Guaranteed.
