Maryland Auto Insurance Laws: Complete Producer Guide

Maryland's auto insurance system is at-fault with contributory negligence — sharing the latter standard with Virginia and making the two DC-area states among the few remaining contributory negligence jurisdictions in the country. For producers, this creates a specific advisory obligation: clients who bear any fault in an accident recover nothing from the other driver. Combined with mandatory UM that cannot be waived and the distinctively Maryland EUIM that stacks on top of liability, Maryland's auto insurance framework rewards producers who understand the system deeply enough to explain why adequate UM/UIM and EUIM at meaningful limits is essential protection for nearly every Maryland driver.

Maryland is an At-Fault State

Maryland operates under a tort (at-fault) liability system — Transportation Code § 17-103. The driver who causes an accident is responsible for damages through their liability insurance.

Why Maryland also has PIP (unusual for an at-fault state): Maryland requires PIP to be offered on all auto policies even as an at-fault state. PIP provides first-party medical coverage immediately after an accident regardless of fault determination. Clients who can demonstrate adequate health insurance may waive PIP in writing — but the coverage must be offered.

Maryland's 30/60/15 Minimums

Required minimums:

$30,000 bodily injury per person

$60,000 bodily injury per accident

$15,000 property damage per accident

= 30/60/15

Context: Maryland's minimums are comparable to most states' ranges — not as low as MN's $10,000 PD (nationally lowest) and not as high as post-2026 NJ's 35/70/25. The $15,000 PD minimum is moderate — modern vehicle values routinely exceed $30,000-$50,000, making the minimum PD potentially inadequate in serious accidents.

Industry recommendation: 100/300/100 or higher for Maryland drivers with assets to protect.

Contributory Negligence — Maryland's Most Distinctive Auto Law

Maryland follows traditional contributory negligence under Maryland common law — identical to Virginia:

Plaintiff at any percentage of fault (even 1%) → zero recovery from the at-fault defendant

No proportional reduction — complete bar to recovery

Maryland and Virginia remain primary contributory negligence states among comparison states (North Carolina is another)

Compare to comparison states:

Advisory implication: In a Maryland contributory negligence scenario, a client who might be found 10% at fault (e.g., driving slightly over the speed limit when hit by an 90%-at-fault driver) recovers nothing from the at-fault driver. Their own UM/UIM and EUIM become the only available recovery mechanisms. This makes adequate first-party coverage not just recommended but practically essential for Maryland drivers.

Uninsured Motorist (UM) Coverage

UM in Maryland:

Required on all standard policies

Must match liability limits (30/60/15)

Cannot be waived — Maryland is one of the few states where UM coverage cannot be rejected

Applies to both bodily injury (30/60) and property damage (15)

Why UM cannot be waived in Maryland: MIA requires UM to prevent the situation where a contributory negligence ruling (blocking recovery from the at-fault driver) combined with the at-fault driver being uninsured leaves the injured party with no recovery at all. Mandatory non-waivable UM provides a floor of protection.

Enhanced Underinsured Motorist Coverage (EUIM)

Md. Ins. § 19-509.1 — specifically testable:

Standard UIM (how most states work): At-fault driver's liability coverage counts toward the victim's damages. UIM pays only the excess over the at-fault driver's coverage.

Example: At-fault driver has $30,000 liability; victim has $50,000 UIM; victim's actual damages = $75,000. Standard UIM: $75,000 - $30,000 = victim's insurer pays $45,000; total recovery $75,000. But if UIM limit is $50,000: $50,000 - $30,000 = $20,000 from UIM; total = $50,000 (not full damages).

Maryland EUIM (stacks on top): EUIM does not offset the at-fault driver's coverage — it adds to it.

Example with EUIM: At-fault driver's $30,000 liability pays first; then EUIM adds up to $50,000 on top of the $30,000. Total potential recovery: $80,000.

Advisory implication: EUIM can dramatically increase the value of UIM coverage in serious accidents — particularly important in a contributory negligence state where the victim's own UM/UIM is frequently their primary recovery path.

EUIM must be offered; policyholders may opt out in writing.

PIP in Maryland

Minimum: $2,500; can be waived: Maryland requires PIP to be offered but allows waiver in writing if the driver has adequate health insurance. The $2,500 minimum is low — primarily useful for immediate medical cost coverage before health insurance processes claims.

Compare to MN's non-waivable $40,000 PIP: Maryland's approach is the opposite of MN in both dollar amount and waivability.

Credit History Prohibition

Auto insurance underwriting: Prohibited (Md. Ins. § 27-501) — credit history cannot be used to determine eligibility for auto insurance.

Note: Credit scoring for rating (premium calculation) is still allowed under COMAR 31.15.11.09 — a distinction between underwriting (eligibility) and rating (price).

Homeowners insurance: Credit history prohibited for ALL purposes — underwriting, rating, and payment plans (COMAR 31.15.11.04).

Advisory Implications for Maryland P&C Producers

Explain contributory negligence to every auto client. Many Maryland clients assume comparative fault applies — that partial fault means partial recovery reduction. The correct answer in Maryland is that any fault means zero recovery from the at-fault driver. This explanation is the most important piece of Maryland-specific auto advisory.

Recommend EUIM explicitly. Given contributory negligence and Maryland's UM-cannot-be-waived requirement, EUIM at meaningful limits ($100,000-$300,000+) provides genuinely important first-party protection.

Advise on PIP waiver carefully. The $2,500 minimum PIP can be waived — but some clients benefit from increasing PIP beyond minimums even with health insurance, given that PIP covers passengers and household members and provides immediate coverage regardless of fault determination timing.

5 Frequently Asked Questions

• What are Maryland's current auto insurance minimums? 30/60/15: $30,000 bodily injury per person, $60,000 per accident, $15,000 property damage — stable minimums (unlike NJ's recent phase-in increase). These minimums apply to all Maryland standard auto policies.
• How does Maryland's contributory negligence rule affect everyday advisory? Every auto advisory conversation in Maryland should include an explanation of contributory negligence — that any shared fault (even 1%) means zero recovery from the other driver. This makes UM/UIM at adequate limits and EUIM the most important coverage elements for Maryland drivers to understand. A Maryland client who believes they can recover partially despite some shared fault may be dramatically underinsured for the actual legal environment.
• Why can't Maryland drivers waive UM coverage? Maryland is one of a small number of states where UM coverage cannot be waived. MIA's rationale: in a contributory negligence state where even minor shared fault bars recovery from the at-fault driver, UM coverage is frequently the primary recovery mechanism for seriously injured drivers. Allowing UM waiver would leave many Maryland injured parties with no recovery path.
• How does EUIM differ from standard UIM in a concrete example? With $100,000 EUIM and an at-fault driver with $30,000 liability: EUIM adds $100,000 on top of the $30,000 liability payment = potentially $130,000 total. Standard UIM at $100,000 would only pay $70,000 ($100,000 - $30,000 = $70,000) — and if damages exceed $100,000 total, the victim has a gap. EUIM's stacking structure provides much greater total recovery potential in serious accidents.
• Can Maryland auto insurers use credit scores at all? Yes — credit scoring for rating (calculating premiums) is allowed under COMAR 31.15.11.09. What is prohibited is using credit history for underwriting (determining eligibility — whether to offer coverage at all) under Md. Ins. § 27-501. For homeowners, both underwriting and rating credit history uses are prohibited entirely under COMAR 31.15.11.04.

Serve Maryland Auto Clients With Current Knowledge

Maryland's contributory negligence, non-waivable UM, EUIM, and credit prohibition create advisory obligations that reward producers who understand Maryland law. JustInsurance's MIA-approved Maryland courses cover current Maryland auto law in depth.

Enroll today and build the Maryland auto insurance expertise your clients need.