Aircraft Insurance in Maryland
Mandatory InsuranceState requirements, lender rules, and airport policies for Maryland aircraft owners.
State Liability Insurance
Required by Law
Minimum: $50,000 per person
State Hull Insurance
Not Required
Lenders always require hull coverage
Federal Requirements (FAA)
The FAA does not require liability or hull insurance for privately owned general aviation aircraft. Only commercial air carriers must carry insurance under 14 CFR Part 205 ($300,000 per passenger minimum). This means Maryland's state mandate is stricter than federal law.
Maryland State Law
Maryland requires liability insurance for all aircraft based or hangared at a Maryland airport under Md. Transportation Code 5-1002. Minimums: $50,000 per individual bodily injury / $100,000 per accident bodily injury / $50,000 property damage. The owner may not operate or allow operation of the aircraft without a policy in force covering both the owner and pilot.
View StatuteLender Requirements
Most aircraft lenders require hull insurance with the lender named as loss payee, plus liability coverage of at least $1M.
Airport & FBO Requirements
Maryland airports and FBOs typically require proof of liability insurance ($1M minimum) for based aircraft. State law already requires coverage for aircraft based or hangared in the state.
Recommended Coverage
Regardless of state law, most aviation professionals recommend at minimum:
- ✓$1M combined single limit liability with $100K per-passenger sublimit — the most common GA coverage level
- ✓Hull coverage equal to current market value (stated value, not actual cash value)
- ✓In-motion and not-in-motion coverage (ground and flight)
Source: AOPA Insurance Services. An estimated 10-20% of GA aircraft fly uninsured (GAO Report GAO-15-740, 2015).