New Laws Target Uninsured Drivers in Maryland and Virginia
On July 1, 2024, new legislation designed to boost auto insurance compliance will come into effect in Maryland and Virginia.
Maryland’s Increased Penalties
Maryland will increase the penalties for driving without insurance starting July 1. These penalties are triggered when the Motor Vehicle Administration (MVA) is notified that coverage has lapsed on a vehicle with active plates. The vehicle owner is assessed an initial penalty for the first 30 days, followed by an additional penalty each day until new coverage is obtained or the plates are returned to the MVA.
As of July 1, the penalty for the initial 30-day period will increase from $150 to $200. Each subsequent day will incur an additional $7 penalty. Additionally, the annual maximum penalty increases from $2,500 to $3,500. These uninsured motorist penalties apply to each uninsured vehicle on the policy.
This is the first adjustment to Maryland’s uninsured driver penalty fines in over three decades. With this change, the average annual premium for a Maryland auto policy is now lower than the maximum annual uninsured driver penalty. Previously, some drivers found it cheaper to pay the fine than obtain insurance. This law aims to reverse that trend, enforcing Maryland’s auto insurance requirement and encouraging safe driving habits.
Virginia’s Mandatory Insurance
Virginia’s new law makes auto insurance coverage mandatory. Formerly, Virginia drivers had the option to pay an uninsured motorist vehicle fee and drive without auto coverage. Due to Virginia’s allowance of non-residents registering out-of-state vehicles, thousands of Maryland residents have registered their vehicles in Virginia. The new insurance requirement may encourage some of these Maryland residents to register their vehicles in Maryland and obtain the required auto coverage.
“These new laws will protect all drivers on the roads in our region from the risks and costs associated with accidents involving uninsured vehicles.”
— Al Redmer, Jr., Baltimore, Executive Director of Maryland Auto Insurance
At Maryland Auto Insurance, our mission is to ensure that all Maryland residents have access to the required auto insurance coverages they need. We commend the efforts of the Maryland and Virginia legislatures to increase enforcement and encourage drivers in both states to have coverage.
