The Maryland Motor Vehicle Administration (MVA) has warned that “Maryland residents must register their vehicles with the Maryland MVA” after it was discovered that a large number of Maryland residents are illegally registering their vehicles in Virginia to avoid Maryland’s higher registration fees, titling taxes, and requirement to carry auto insurance.
In a post on social media, the MVA added, “It’s the law. Driving without a valid registration is a criminal misdemeanor – and it’s not worth the risk.” The image that accompanies the post states, “Maryland residents. Maryland plates.” and asks Marylanders to “Avoid the fines. Avoid the risks.” with a prompt to report violations to [email protected] or to contact local law enforcement.
Virginia’s vehicle registration fees are significantly lower than Maryland’s and for many years, Virginia allowed residents to pay an uninsured motorist fee instead of purchasing auto insurance. This created a loophole that Maryland residents could exploit, allowing them to legally drive with Virginia tags while not having insurance, which is a violation of Maryland law.
Unlike many states, Virginia’s Department of Motor Vehicles (DMV) did not require proof of Virginia residency to register a vehicle. This made it easy for Maryland residents to use a friend’s address or a P.O. box in Virginia to get plates. The practice is costing Maryland millions of dollars in lost revenue annually. The MVA estimated that as many as 111,000 Virginia-tagged vehicles were linked to Maryland addresses, resulting in a potential loss of up to $12 million.
Maryland has struggled to effectively enforce its laws. While it is illegal for a Maryland resident to drive a vehicle registered out of state, the MVA and law enforcement agencies lack the resources to address the widespread problem. In a key development, Virginia has taken a step to close the loophole. It now requires proof of insurance to register a vehicle, effectively eliminating the uninsured motorist fee option. This change is expected to significantly reduce the number of Maryland residents illegally registering their cars in Virginia, although it will take time to see the full effect.
