Auto Insurance Information
Can I drive legally without insurance?
NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don’t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous.
If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.
Below is an example of the state minimum limits for auto liability insurance for MD, VA and the District of Columbia. The first number refers to liability limits for bodily injury for any one person, the second to limits for all persons injured, and the third refers to property damage liability limits. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual and $10,000 coverage for property damage.
| State | Insurance Required (1) | Minimum Liability limits | At Registration | At time of accident | At all times in vehicle | Insurer verification of insurance (2) | Penalties for noncompliance (first offense) |
|---|---|---|---|---|---|---|---|
| VA | BI & PD Liab, UM |
25/50/20 | No |
No |
No |
a,b,c,d |
none |
| MD | BI & PD Liab, PIP(*), UM |
20/40/15 | Yes |
No |
No |
a |
up to $1,000 fine and/or 1-year jail |
| DC | BI & PD Liab,UM |
25/50/10 | Yes |
Yes |
Yes |
a,c |
$300 - $500 fine or maximum 30 days jail |
| * May be waived for the policyholder but is compulsory for passengers. | |||||||
| Proof of valid insurance. The form of evidence varies by state and may take the form of an insurance policy, binder, certificate of self-insurance, surety bonds, or certificate of deposit. Many states require insurance identification cards issued by the insurer. Self-certification, where the driver is required to identify the insurer and policy number in writing rather than in person, is not included. "Yes" in "At all times" columns includes states where drivers must produce proof on demand. |
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| (1) Compulsory Coverages: BI Liab=Bodily injury liability PD Liab=Property damage liability UM=Uninsured motorist PD=Physical damage Med=First party (policyholder) medical expenses UIM=Underinsured motorist PIP=Personal Injury Protection. Mandatory in no-fault states. Includes medical, rehabilitation, loss of earnings and funeral expenses. In some states PIP includes essential services such as child care. |
(2) Verification types a. Insurer must notify Department of Motor Vehicles or other state agency of cancellation or nonrenewal. b. Insurer must verify financial responsibility or insurance after an accident or arrest. c. Insurer must verify randomly selected insurance policies upon request. d. Insurers must submit entire list of insurance in effect, which may be compared with registrations at a state agency. Also known as a computer data law. Also includes cases where insurers are required to report new issues and/or renewals. |
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| Source: Property Casualty Insurers Association of America; state departments of insurance and motor vehicles. | |||||||
Reprinted with permission of Insurance Information Institute, Inc.