February 27, 1998 98-R-0301

FROM: Jerome Harleston, Senior Attorney

RE: Uninsured Motorists

You want to know the fines, monetary penalties, and other assessments imposed on uninsured drivers in Maryland.

Maryland imposes uninsured motorist penalty fees (UMPFs) when a vehicle with a valid registration has been identified as uninsured for a specified period. The penalty is $150 for the first 30 days and $7 a day after that. These amounts have been in effect since 1991. In FY 1995-96 revenue from UMPF collections totaled $15.5 million.

Revenue from UMPFs have grown on average 7% per year since 1992. The average penalty fee paid during this period was $280, with an average uninsured period of 48 days. The data suggests that (1) the rate of verifiable uninsured vehicles is growing, as reflected in the steady average penalty fee paid and increase in total revenue and (2) the majority of uninsured vehicles remain uninsured for less than two months.

Annual revenue growth of UMPFs since 1992 and distribution of UMPFs in 1996 is shown on Table 1 and Chart 1.