Maryland Cracks Down on Drivers Registering Cars Out of State

State lawmakers push to close loophole allowing Maryland residents to register vehicles in Virginia

Mar. 25, 2026 at 2:50am

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Maryland is taking action to address the growing issue of Maryland residents registering their vehicles in neighboring Virginia to avoid the state's registration requirements. The Maryland Motor Vehicle Administration (MVA) has issued over 58,000 warning letters this year to drivers with Virginia license plates, and estimates that more than 73,000 vehicles were improperly registered out of state as of last year. Lawmakers are now pushing for legislation to close this loophole and increase penalties for drivers who fail to properly register their vehicles in Maryland.

Why it matters

This issue is costing Maryland millions in lost registration revenue, unpaid traffic fines and tolls, and is also creating a public safety concern, as many of these out-of-state registered vehicles are uninsured and not properly inspected. The state is losing critical funding for road projects, and there are concerns about the disproportionate number of fatal and non-fatal crashes involving Virginia-registered vehicles.

The details

A loophole in Virginia law has allowed Maryland residents to register their vehicles in the Commonwealth, even if they primarily reside in Maryland. Maryland law requires vehicles to be registered in the state within 60 days of establishing residency, with some exceptions for veterans and students. The MVA says many of the drivers with Virginia tags are uninsured, behind on inspections, and not paying traffic fines. Registration fees make up 17% of Maryland's Transportation Trust Fund, which pays for road projects.

  • So far in 2026, the MVA has issued 58,000 warning letters to Maryland drivers with Virginia tags.
  • As of last year, more than 73,000 vehicles were improperly registered out of state.
  • Between 2023 and 2025, police say there were 14 fatal crashes involving Virginia-registered cars, which made up 10% of all fatal crashes during that time frame.

The players

Maryland Motor Vehicle Administration (MVA)

The state agency responsible for vehicle registration and enforcement in Maryland.

State Sen. Cory McCray

A Maryland state senator who has proposed legislation to close the loophole and increase penalties for drivers who fail to properly register their vehicles in the state.

Baltimore City

The city government, which says drivers with Virginia tags often don't pay traffic citations, costing the city millions in unpaid fines.

Anna

A Maryland resident who registered her vehicle in Virginia after one of her cars was repossessed, citing the high cost of replacing the missing license plates in Maryland.

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What they’re saying

“We have to condition the behavior that's taking place, and we do not do that when we're letting loopholes stay in place.”

— State Sen. Cory McCray, State Senator

“They're after the ones that have Virginia tags and don't have no insurance. I got insurance. I don't have $7,000 to dish out to people like that... If they don't have insurance, then you need to go after them, but if they comply, and if the insurance is not worried about it, why should y'all?”

— Anna

What’s next

The proposed legislation to close the loophole and increase penalties for drivers who fail to properly register their vehicles in Maryland has passed out of committee and is now being reviewed by the opposite chamber. If passed, the bills could make it to Governor Wes Moore's desk for signature.

The takeaway

This crackdown on out-of-state vehicle registrations highlights the significant financial and public safety impacts that can result from loopholes in state laws. Maryland is taking decisive action to recoup lost revenue, improve road safety, and ensure all drivers are properly registered and insured within the state.