With the cost of just about everything going up, you may be looking at ways to trim your budget. One thing you definitely don't want to cut out is your auto liability insurance. Even if you have an old car or truck that is just sitting around, if the vehicle is registered with the state it needs to have the proper insurance coverage. Not only is it a good idea, but it is also the law in Pennsylvania and Maryland and that applies to both personal auto and commercial auto insurance. Both states require residents to carry a minimum amount of personal auto insurance, though the types of coverage and amounts required differ for each state.
Recently, we have had this conversation with more than one customer:
Customer: I want to cancel my auto insurance.
Keller-Brown: Ok, can I ask why?
Customer: I don't use the vehicle anymore.
Keller-Brown: As long as the vehicle has a tag and is registered, you are required by law to carry insurance. Do you still have the tag?
Customer: Yes, but I want to cancel the insurance. The vehicle just sits here.
Keller-Brown: There are pretty serious fines and penalties in both Pennsylvania and Maryland if you drop insurance on a vehicle that is still registered.
Don't just take our word for it. Here are the state laws regarding auto insurance for Pennsylvania and Maryland.
Pennsylvania's Auto Insurance Requirements
Pennsylvania law states: All motor vehicles subject to registration such as cars, vans, motorcycles, recreational vehicles, trucks, and buses must have liability insurance. You are in compliance with the law if you have liability insurance in the following amounts: $15,000 for injury or death of one person in an accident, $30,000 for injury or death of more than one person in an accident, and $5,000 for damage to property of another person. It is important to note that Pennsylvania's First Party Benefits (FPB) are not provided to the person named on the title for any auto accident if that person does not have the state's required insurance on a vehicle. Section 1714 of the Pennsylvania Motor Vehicle Code states: "An owner of a currently registered motor vehicle who does not have financial responsibility [required insurance] or an operator or occupant of a recreational vehicle not intended for highway use, motorcycle, motor-driven cycle, motorized pedalcycle or like type vehicle required to be registered under this title cannot recover first party benefits."
More to consider: In Pennsylvania, a lapse in insurance coverage results in the suspension of your vehicle registration privilege for three months, unless the lapse of insurance was for a period of fewer than 31 days and the owner or registrant proves to PennDOT that the vehicle was not operated during this short lapse in coverage. The registration plate and card must be surrendered to PennDOT in order to serve the suspension. Restoration fees and proof of insurance must be submitted prior to having your registration restored. In lieu of serving a registration suspension, you have the option to pay a civil penalty. The optional civil penalty fee is $500. Additionally, you are required to pay a registration restoration fee.
Maryland's Auto Insurance Requirements
According to Maryland law: All Maryland vehicles must be insured at all times by a vehicle insurance company licensed in Maryland. Your vehicle insurance must cover, at a minimum: $30,000 for bodily injury, $60,000 for two or more people, and $15,000 for property damage.
Maryland's Motor Vehicle Administration has some hefty fines for uninsured vehicles: You could lose license plates and vehicle registration privileges and pay uninsured motorist penalty fees for each lapse of insurance—$150 for the first 30 days, $7 for each day thereafter. You may also be prohibited from registering any future vehicles or renewing a suspended registration. A fine of up to $1,000 and/or one-year imprisonment for providing false evidence of insurance is also possible.
We Can Help Lower Your Auto Insurance Costs
It may seem like an unnecessary expense to pay insurance on a vehicle that is just sitting around, but having the legally mandated insurance coverage will save you from hefty fines from the state. You will also have the peace of mind of knowing if and when you need to drive that car or truck, it is ready to roll with the proper insurance coverage. And that could save you from financial catastrophe should your vehicle be involved in an accident.
At Keller-Brown, we will never try to force you to carry insurance you don't need. Instead, we work closely with you to determine what coverage you need and what discounts you may be eligible for. For example, did you know there are auto insurance discounts available if you have completed a driver safety course? Or, you may be eligible to save money by bundling your auto insurance with your home insurance policy.
Do You Have Questions About Car Insurance?
Contact an insurance agent at Keller-Brown Insurance Services today to answer any questions about car insurance or for a free review and insurance quote. As an independent insurance agency serving Pennsylvania and Maryland, we represent several top-rated insurance companies. We have the flexibility to find you the right coverage at competitive premiums for auto, home, business and more.
