MD DMV Insurance and Financial Responsibility 3

Question 1

What is the daily fine the Maryland MVA can assess for the first 30 days of an insurance lapse?

Accepted Answer

$150 penalty plus $7 per day after the first 30 days at $150

Answer

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?

Accepted Answer

Cancel the insurance only after transferring the title and returning or transferring the plates

Answer

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?

Accepted Answer

The insurance company reports the cancellation electronically

Answer

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?

Accepted Answer

Every vehicle with active Maryland registration, even if it is not driven

Answer

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?

Accepted Answer

Medical expenses and lost wages for you and your passengers regardless of fault

Answer

PIP pays medical costs and lost wages for the insured and passengers no matter who caused the crash.

(MD DMV) Maryland Department of Motor Vehicle Practice Test