Maryland: No-Fault Or At-Fault Insurance?

Maryland is an at-fault or tort state when it comes to vehicle insurance. This means that the person deemed responsible for a car accident is also responsible for paying for any resulting injuries and property damage. In at-fault states like Maryland, drivers are not required to carry personal injury protection (PIP) insurance, which covers their own medical expenses after an accident, regardless of who is at fault. Instead, drivers in Maryland are required to carry liability insurance, which covers the other party's expenses after an accident.

Maryland is an at-fault state

Maryland is an "at-fault" or "tort" state, which means that the person deemed responsible for a car accident is liable for paying for other people's injuries and property damage. In other words, the driver who is at fault for a car accident in Maryland has to pay for the other party's "damages", including medical bills, car repairs, lost wages, and pain and suffering.

In Maryland, the insurance company of the at-fault driver typically pays for the harm resulting from the accident. This is usually done through liability insurance, which is why Maryland law requires car owners and drivers to carry a minimum amount of liability insurance. The at-fault driver's insurance company will pay for any monetary compensation, which is one of the main reasons why drivers carry car insurance in the first place.

Unlike in no-fault states, drivers in Maryland can file lawsuits to seek compensation for even basic medical expenses after an accident. In no-fault states, drivers must first turn to their own insurance policy to obtain compensation for damages, and can only pursue a claim against the other driver once this amount is exhausted. In Maryland, an injured party is not required to use their own insurance coverage before pursuing further remedy from the driver whose actions caused the accident.

Maryland uses a contributory negligence system, meaning drivers cannot sue if they share even 1% of the blame for the accident. If the other driver was 100% responsible, the victim is free to sue them. Being an "at-fault" state helps keep Maryland's insurance costs relatively low compared to no-fault states.

Maryland's minimum insurance coverage requirements

Maryland is an "at-fault" or "tort" state, meaning the person at fault for a car accident is responsible for paying for other people's injuries and property damage. The state requires all drivers to carry liability insurance, which pays for others' expenses after an accident, such as vehicle damage and medical expenses.

• Bodily injury liability coverage: $30,000 per person and $60,000 per accident.
• Property damage liability coverage: $15,000 per accident.
• Uninsured/underinsured motorist (UM/UIM) coverage: $30,000 per person and $60,000 per accident for bodily injury, and $15,000 per accident for property damage.
• Personal injury protection (PIP): $2,500 per person. This covers medical expenses and lost income for you and your passengers, regardless of who is at fault.

While these are the minimum requirements, higher coverage amounts may better protect you financially. You may also want to consider additional coverage types to pay for your own expenses in the event of an accident, such as collision and comprehensive insurance.

The process for pursuing a claim in an at-fault state

Maryland is an "at-fault" or "tort" state, which means that the person who is at fault for a car accident is responsible for paying for the other person's injuries and property damage. The process for pursuing a claim in an at-fault state like Maryland is as follows:

Step 1: Determine Fault

The insurance company for each driver involved in the accident will assign an adjuster to determine who was at fault. Claims adjusters review the details of the accident, talk to witnesses, look at police reports, and review the accounts of the accident from the parties involved. Photos of the accident scene and vehicle damage, as well as state traffic laws, can also be used to determine fault.

Step 2: File a Claim

Once fault has been determined, victims must file a claim with the at-fault driver's insurance company to collect payment for their losses. If fault determination takes a long time, drivers can file a claim with their own insurance company if they have coverage applicable to their own expenses (e.g. collision and comprehensive insurance). Their insurer can then recoup the costs from the at-fault driver's insurer if the policyholder is not at fault.

Step 3: Understand State-Specific Rules

It's important to be aware of any specific rules or regulations in your state that may impact your claim. For example, Maryland uses a contributory negligence system, meaning drivers cannot sue if they share even 1% of the blame for the accident.

Step 4: Consult an Attorney

Step 5: Provide Documentation

When filing a claim, be prepared to provide detailed information and documentation related to the accident, including medical expenses, lost wages, property damage, and any other relevant information.

Step 6: Consider a Lawsuit

In some cases, you may need to pursue legal action to recover damages. In an at-fault state, the not-at-fault driver can file a car accident lawsuit against the at-fault driver to recover damages without considering a threshold limit. However, it is generally advisable to cooperate with your insurance company and file a claim with the other driver's insurance company before pursuing a lawsuit.

The benefits of no-fault insurance

Maryland is an "at-fault" or "tort" state, which means the person who is at fault for a car accident is responsible for paying for other people's injuries and property damage resulting from the accident.

No-fault insurance is designed to save you from having to go to court to deal with a claim or lawsuit after a car accident or collision. With no-fault insurance, you only ever work with your own insurance company, so you can get on with your life sooner.

Quick payouts

Because fault doesn’t matter with no-fault insurance, drivers can have their medical claims paid quickly after an accident.

Fewer lawsuits

No-fault insurance means that insurers don’t have to spend as much money on litigation and can pass the savings to customers.

Broad coverage

No-fault insurance covers a wide range of expenses in addition to medical bills, including childcare and household services.

One insurance company

The insured has only one insurance company to deal with.

Less fault determination

Fault for an accident is established by the insurance companies first, before any of the claims for damages are dealt with. This system often entails lengthy and costly lawsuits, which may delay payment of the claims made by injured parties.

How to pursue compensation in an at-fault state

Maryland is an "at-fault" or "tort" state, meaning the person who is at fault for a car accident is responsible for paying for other people's injuries and property damage. Here are some steps on how to pursue compensation in an at-fault state like Maryland:

• Understand the concept of fault and liability: The at-fault party who acted negligently or wrongfully is legally liable and responsible for any harm, injuries, or damage resulting from their actions in an accident. Their insurance can cover the associated costs up to a certain limit.
• Know the difference between comparative and contributory negligence: In contributory negligence states, victims bearing any share of fault forfeit their recovery rights. However, in comparative negligence states, victims can receive reduced recovery proportional to their degree of fault. Maryland follows the contributory negligence rule, meaning that if you are even partly responsible for the accident, you cannot make a claim against the other driver.
• File a claim with your insurance company: If you are at fault in an accident, you can still file a claim with your insurance company, especially if you have collision or comprehensive coverage. Collision coverage can help pay for vehicle repairs, while medical payments coverage can help with medical bills.
• Understand the role of insurance in at-fault accidents: Your insurance will likely still pay approved claims on covered costs like vehicle repairs, but your insurance rates may increase upon renewal.
• Explore potential avenues for compensation: Even if you are at fault, you may still be able to receive partial financial recovery by tapping into applicable insurance coverage, pursuing third-party liability, and seeking dedicated attorney support.
• Consult with an experienced attorney: An experienced car accident lawyer can help you navigate the complex process of determining fault, negotiating with insurance companies, and pursuing legal action if necessary. They can also help you understand your rights and protect your interests.
• Act quickly: There is a statute of limitations for filing a claim after an accident, which is typically two to four years from the time of the accident. It's important to act quickly to gather evidence and increase your chances of a successful claim.

Frequently asked questions