MD DMV Insurance and Financial Responsibility 3 — Questions and Answers
Question 1: What is the daily fine the Maryland MVA can assess for the first 30 days of an insurance lapse?
- $150 penalty plus $7 per day after the first 30 days at $150 (Correct answer)
- $5 per day from day one
- $100 flat fee only
- $50 per week
Correct answer: $150 penalty plus $7 per day after the first 30 days at $150
Maryland charges a $150 penalty for up to 30 days of lapse, then $7 for each additional day.
Question 2: You sell your car in Maryland but keep the insurance active on it. What should you do?
- Cancel the insurance only after transferring the title and returning or transferring the plates (Correct answer)
- Cancel insurance the moment the buyer pays
- Keep insurance for 60 more days by law
- Transfer the insurance to the buyer
Correct answer: Cancel the insurance only after transferring the title and returning or transferring the plates
You should complete the title transfer and return or transfer your plates before canceling insurance to avoid MVA penalties.
Question 3: Your insurance company cancels your policy for non-payment. Who notifies the Maryland MVA?
- The insurance company reports the cancellation electronically (Correct answer)
- Only the driver must report it
- The county clerk
- No one; cancellations are not tracked
Correct answer: The insurance company reports the cancellation electronically
Maryland insurers are required to electronically notify the MVA when a policy is canceled or lapses.
Question 4: Which of the following vehicles must be insured in Maryland?
- Every vehicle with active Maryland registration, even if it is not driven (Correct answer)
- Only vehicles driven daily
- Only vehicles less than 10 years old
- Only vehicles financed by a bank
Correct answer: Every vehicle with active Maryland registration, even if it is not driven
Maryland requires continuous insurance on every registered vehicle regardless of whether it is being driven.
Question 5: What does Personal Injury Protection (PIP) cover in a Maryland auto policy?
- Medical expenses and lost wages for you and your passengers regardless of fault (Correct answer)
- Only damage to the other driver's car
- Only theft of your vehicle
- Only injuries when the other driver is at fault
Correct answer: Medical expenses and lost wages for you and your passengers regardless of fault
PIP pays medical costs and lost wages for the insured and passengers no matter who caused the crash.
Question 6: Can you waive Personal Injury Protection (PIP) in Maryland?
- Yes, a named insured may sign a written waiver (Correct answer)
- No, it can never be waived
- Yes, but only drivers over 65
- Yes, verbally over the phone
Correct answer: Yes, a named insured may sign a written waiver
Maryland allows the first named insured to waive PIP with a written waiver.
Question 7: Driving an uninsured vehicle in Maryland can result in:
- Fines, loss of plates, and suspension of registration (Correct answer)
- Only a warning for the first offense
- A parking ticket
- No penalty if the car belongs to a family member
Correct answer: Fines, loss of plates, and suspension of registration
Driving uninsured in Maryland can bring fines, confiscation of plates, and registration suspension.
MD DMV Insurance and Financial Responsibility 3
What is the daily fine the Maryland MVA can assess for the first 30 days of an insurance lapse?