If you reside in the state of Maryland and you are looking to buy a car insurance policy, then there are some basic requirements mandated by the law of the state you must know.

The state of Maryland follows a tort system which means that one of the parties involved in an accident must be at fault. The person responsible for the damage has to cover all costs of bodily injury and property damage caused to the victim.

Maryland state law defines minimum bodily injury liability with a limit of $20,000 per person and $40,000 per accident if more than one person is injured in an accident. The minimum property damage liability is $15,000.

The bodily injury liability covers costs of legal proceedings in case the matter goes to court or out of court settlements if it is resolved mutually by affected parties.

The uninsured motorist liabilities are also required and need to be the same amount as bodily injury and property damage. This basic coverage is referred to as 20/40/15 with 20/40 UM limits.

The minimum Personal Injury Protection (PIP) coverage required in Maryland is $2500 per person. It pays for medical expenses for you and your passengers. You have the option of taking a higher PIP cover or waiving completely. Each insurance company has their own rules for claiming PIP.

You can get additional coverage that pays for collision damages, medical expenses, rental costs, transportation costs, towing and labor charges, and mechanical damage.

The average car insurance premium for residents of Maryland is $2,235. The average car insurance premium in Maryland in 2009 was 14% higher than that in 2008.

You must file an FR-19 while registering a vehicle with the Motor Vehicles Administration in Maryland. This form is provided by your car insurance company and is proof of your insurance. It states that the insurance coverage should be maintained by you as long as you own the vehicle.

More information on Maryland�s insurance requirements is available by contacting the Maryland Insurance Administration in Baltimore at 1-800-492-6116 or by visiting their website at http://www.mdinsurance.state.md.us.

If you do not have valid car insurance coverage that meets the requirement set by the authorities of the state of Maryland, you could face a fine of up to $150 for the first 30 days and $7 for each additional day that you don't have insurance. Your registration may also get cancelled and you will not be able to register a new vehicle until you clear all your fines.

Most auto insurance companies in Maryland provide insurance quotes which has the state requirements covered.