Auto Insurance In Maryland: What's Mandatory?

Driving in Maryland requires more than a valid driver's license. To drive legally, you must have car insurance that meets the state's minimum requirements. Maryland requires two types of car insurance: liability insurance and uninsured motorist coverage. The minimum liability coverage required in Maryland is 30/60/15, which means $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage per accident. Maryland's minimum requirements for uninsured motorist coverage are identical to the state's liability requirements.

Minimum liability coverage

In Maryland, auto insurance is mandatory, and the state has set minimum liability coverage requirements that drivers must meet to comply with the law. These minimum liability limits, often referred to as 30/60/15 coverage, are as follows:

• $30,000 per person for bodily injury liability: This covers the medical expenses of a single person injured in an accident caused by the policyholder. If an accident results in injuries to multiple people, the insurance provider will pay up to the per-accident limit.
• $60,000 per accident for bodily injury liability: This covers the total medical expenses of all injured individuals in a single accident caused by the policyholder. This per-accident limit is typically double the per-person limit.
• $15,000 per accident for property damage liability: This covers damage to someone else's property, typically their vehicle, in an accident caused by the policyholder. This includes repairs or replacement if the property is damaged beyond repair.

These minimum liability limits are designed to provide financial protection in the event of a covered accident. If a driver causes an accident, their liability insurance will cover the other party's medical expenses and property damage repairs up to the limits of their policy. It is important to note that these are the minimum requirements, and drivers can opt for higher coverage limits to protect their assets in the event of a more severe or costly accident.

In addition to liability coverage, Maryland law also requires uninsured motorist coverage with minimum limits that mirror the liability coverage: $30,000 per person, $60,000 per accident for bodily injury, and $15,000 per accident for property damage. This coverage protects drivers and their passengers if they are involved in an accident with an uninsured driver or a driver whose insurance is insufficient to cover the expenses.

Uninsured/underinsured motorist protection

Maryland law requires all drivers to carry a certain amount of uninsured/underinsured motorist protection. This coverage is designed to protect you in the event of a car accident with a driver who does not have sufficient insurance to cover the damages incurred. The minimum coverage requirement in Maryland is $30,000 per person and $60,000 per accident for bodily injury, and $15,000 per accident for property damage. This protection covers bodily injury and property damage caused by an uninsured motorist, including hit-and-run drivers.

Uninsured motorist protection is essential as it ensures that you can receive compensation for your injuries and property damage even if the at-fault driver does not have insurance. In the event of an accident with an uninsured motorist, your insurance company steps in to assume the at-fault driver's liability and cover the damages. This coverage also applies in cases where the at-fault driver has insufficient insurance to cover your damages. In such cases, your insurance company can provide additional coverage to make up the difference.

Under Maryland law, uninsured motorist coverage typically mirrors your liability coverage. However, it is important to note that you can also purchase enhanced underinsured motorist (EUIM) coverage, which allows for the stacking of policies. This means that if your policy limits are higher than the at-fault driver's, you can access the additional coverage provided by your policy.

It is worth considering increasing your uninsured motorist coverage limits to protect yourself adequately in the event of a serious accident. Higher limits can be purchased for an additional premium, providing you with greater peace of mind and financial protection.

In addition to uninsured motorist protection, Maryland also requires drivers to carry personal injury protection (PIP). PIP covers medical expenses and lost income for you and your passengers, up to $2,500 per person, regardless of fault. This coverage can be waived to reduce your premium, but it is important to ensure that you still meet the minimum coverage requirements.

Personal injury protection (PIP)

The minimum PIP coverage in Maryland is $2,500, but some policies offer up to $20,000. The coverage limit depends on the amount elected and usually ranges from $2,500 to $5,000. While PIP is not mandatory, insurance companies are required by law to offer it when you purchase an auto insurance policy. You can choose to reject it in writing by executing a waiver if you do not wish to have it. However, it is recommended that you get as much PIP coverage as possible, as it provides valuable financial protection in the event of an accident.

PIP benefits can be extremely helpful in the immediate aftermath of an accident. It can cover your medical bills and lost wages for the first week or two after the accident, giving you peace of mind while you focus on your recovery. It is important to note that there is a one-year deadline to apply for PIP benefits, and you can receive benefits for up to three years after the accident.

Maryland residents often overlook PIP coverage when purchasing auto insurance. However, it is a valuable form of protection that ensures you and your loved ones are taken care of financially in the event of an accident. By understanding the benefits and process of PIP insurance, Maryland drivers can make informed decisions about their auto insurance coverage.

Bodily injury liability

In the state of Maryland, it is mandatory to have auto insurance that meets the state's minimum requirements in order to drive legally. One of the key components of auto insurance in Maryland is Bodily Injury Liability coverage. This type of insurance coverage is crucial as it provides financial protection in the event of a car accident where someone is injured.

It is important to note that these minimum requirements may not be sufficient for all drivers. The recommended amount of coverage will depend on your financial situation and the value of your assets. If you have substantial assets, such as a house or a retirement account, it is advisable to increase your Bodily Injury Liability coverage to ensure adequate protection. As your financial situation improves over time, you should periodically review and adjust your insurance coverage accordingly.

While the minimum Bodily Injury Liability coverage in Maryland is designed to provide basic protection, it may not be enough to cover all expenses in the event of a serious accident. If you are found liable for an accident that results in significant injuries, the minimum coverage may not fully satisfy the judgment against you. In such cases, your personal assets could be at risk. Therefore, it is essential to carefully consider your financial situation and choose an appropriate level of coverage that provides adequate protection.

Additionally, it is worth noting that Bodily Injury Liability coverage typically applies not only to the policyholder but also to other drivers operating your vehicle with your permission. This includes family members living with you. Therefore, it is crucial to ensure that anyone driving your vehicle understands the importance of maintaining the appropriate level of insurance coverage to protect themselves and others in the event of an accident.

Property damage liability

In the state of Maryland, drivers must have car insurance that meets the state's minimum requirements to drive legally. One of these requirements is property damage liability insurance. This type of insurance covers property damage you cause due to the negligent operation of a vehicle. This includes damage to another person's vehicle or property.

The minimum property damage liability insurance required in Maryland is $15,000 per accident. This means that if you are at fault in an accident and cause property damage, your insurance will cover up to $15,000 of the repair or replacement costs. This coverage can be used for damage to another vehicle, a building, a fence, or any other type of property that was damaged in the accident.

It is important to note that this coverage only applies if you are found to be at fault for the accident. If another driver is at fault, their property damage liability insurance would cover the cost of repairs to your property. This is why it is crucial to exchange insurance information with the other driver after an accident, so that any necessary claims can be made.

While the minimum property damage liability insurance in Maryland is $15,000, drivers may want to consider purchasing higher limits. Higher limits provide additional protection in the event of a serious accident and can give you peace of mind knowing that you are covered for a larger amount of property damage. This is especially important if you live in an area with a high cost of living, as the cost of repairs or replacements could exceed the minimum coverage amount.

In addition to property damage liability insurance, Maryland drivers are also required to have bodily injury liability insurance and uninsured motorist coverage. Bodily injury liability insurance covers the cost of injuries to another person caused by the negligent operation of a vehicle, while uninsured motorist coverage protects you and your passengers if you are involved in an accident with a driver who does not have insurance or does not have sufficient insurance to cover the costs of the accident.

Frequently asked questions