Full Coverage Auto Insurance In Maryland: What's Included?

If you're a driver in Maryland, you'll need auto insurance that meets the state's minimum requirements for coverage. These requirements include liability insurance, which covers bodily injury and property damage, as well as uninsured/underinsured motorist coverage and personal injury protection. The specific minimum coverage amounts are $30,000 per person and $60,000 per accident for bodily injury liability, and $15,000 per accident for property damage liability. Uninsured/underinsured motorist coverage and personal injury protection have the same minimum requirements as bodily injury liability. While collision and comprehensive insurance are not mandated by the state, they may be required by your lender or leasing company.

Bodily injury liability

In Maryland, it is mandatory to have car insurance that meets the state's minimum requirements. One of the critical components of auto insurance in Maryland is Bodily Injury Liability coverage. This coverage protects you in the event of injuries caused to another person due to your negligent operation of a vehicle. It also extends to situations where a family member living with you or someone using your car with your permission is at fault in an accident.

The state of Maryland has set minimum liability limits for bodily injury coverage at $30,000 per person and $60,000 per accident. This means that if you are at fault in an accident and the other driver or passengers are injured, your insurance will cover their medical expenses up to $30,000 per person and a total of $60,000 for all injured individuals. It is important to note that these limits may not be sufficient to cover the costs of serious injuries, and increasing your coverage limits is advisable to protect your assets.

The Bodily Injury Liability coverage also provides protection in the event of legal proceedings arising from the accident. It covers legal fees and judgments against you, up to the specified limit. This aspect of the coverage is crucial, as it can help prevent you from losing your assets, such as your house or retirement account, in the event of a lawsuit. As your financial situation evolves over time, it is recommended to review your coverage limits regularly and increase them accordingly.

While the minimum coverage limits are a requirement in Maryland, it is in your best interest to consider higher limits. By paying an additional premium, you can increase your coverage limits to provide more comprehensive protection. This is especially important if you have significant assets to protect. As your life circumstances change and you accumulate more assets, consider increasing your coverage limits to at least $250,000 per person and $500,000 per accident. This way, you can ensure that you have adequate protection and peace of mind while driving in Maryland.

Property damage liability

To be able to drive legally in Maryland, it is mandatory to have car insurance that meets the state's minimum requirements. One of these requirements is Property Damage Liability Coverage, which is designed to cover the costs of damage caused to someone else's property in the event of a car accident. This includes damage to another person's car as well as other types of property, such as buildings or fences.

The minimum Property Damage Liability Coverage required in Maryland is $15,000 per accident. This means that if you are at fault in a car accident and cause property damage, your insurance will cover the repair or replacement costs up to $15,000. This coverage is essential to protect yourself financially in the event of an accident, as it can help cover the costs of repairs or replacements for the damaged property.

It is important to note that the minimum coverage requirements in Maryland may not be sufficient for all drivers. If you are involved in a serious accident or cause extensive property damage, the repair or replacement costs may exceed the $15,000 limit. In such cases, you may be personally responsible for covering the additional costs. Therefore, it is recommended to consider purchasing higher limits of property damage liability coverage to ensure adequate protection.

By understanding the specifics of Property Damage Liability Coverage and the overall auto insurance requirements in Maryland, you can make informed decisions about your policy choices and ensure that you are compliant with the law while also adequately protecting yourself and your assets.

Uninsured/underinsured motorist coverage

In Maryland, the law mandates that all drivers carry a minimum amount of uninsured/underinsured motorist coverage. The current requirement is set at $30,000 per person and $60,000 per accident for bodily injury, and $15,000 per accident for property damage. This coverage ensures that if you are in an accident with an uninsured or underinsured driver, your insurance company will step in to cover the costs of your medical bills, car repairs, and other expenses related to the incident.

The purpose of this coverage is to put the car accident victim in the same position they would have been in if the at-fault driver had adequate liability coverage. Essentially, your insurance company takes on the role of the at-fault driver's insurance company, covering the costs that the other driver is unable to pay. This can include not only your medical expenses but also lost wages, pain and suffering, and any other losses you may incur due to the accident.

It's important to note that uninsured/underinsured motorist coverage is separate from liability insurance, which covers the costs of the other party's damages if you are at fault in an accident. While Maryland law sets minimum requirements for uninsured/underinsured motorist coverage, it is generally recommended to consider higher coverage limits to ensure adequate protection in the event of a serious accident.

Additionally, Maryland law also requires personal injury protection (PIP) to be included in auto insurance policies, providing coverage for your own medical expenses and lost income up to a certain limit, regardless of who is at fault in the accident. However, Maryland is not a no-fault state, which means that determining fault and liability is still a crucial aspect of the insurance claims process.

Personal injury protection

In Maryland, insurance companies are required to offer PIP coverage to their policyholders, and the minimum coverage amount allowed is $2,500 per person. However, policyholders can choose to waive PIP coverage or limit the amount of coverage in writing. While Maryland requires PIP, it is not a no-fault state because it does not limit the insured's right to sue the negligent driver in exchange for this coverage.

PIP provides valuable benefits, including quick coverage of medical expenses and lost wages after an accident. It is one of the cheapest policies to include in an insurance plan, but it can provide much-needed financial assistance while other claims are pending. Additionally, using PIP coverage does not result in increased insurance premiums, and it does not affect the insured's eligibility to receive compensation from the negligent party's insurer.

The deadline for filing a PIP claim in Maryland is typically one year from the date of the accident, as most insurance companies include a one-year "statute of limitations" for PIP claims in their contracts. It is important to initiate a claim within this timeframe to avoid losing the right to PIP benefits.

Collision and comprehensive coverage

In Maryland, full-coverage car insurance means carrying both comprehensive and collision insurance in addition to any state-mandated auto insurance. Comprehensive and collision insurance are both optional coverages that protect your vehicle, but they differ in the type of incident they cover.

Collision Coverage

Collision insurance covers damage to your vehicle resulting from a collision with another vehicle or object. This includes repairs or a complete replacement of your covered vehicle. It covers damage to your car from accidents involving other cars or objects, regardless of fault, and single-car rollovers.

Comprehensive Coverage

Comprehensive insurance covers non-collision damage to your vehicle, such as theft, vandalism, fire, hail, animal damage, and weather damage. It covers damage to your car from unexpected incidents that are not collision-related. For example, it would cover damage caused by a falling tree, vandalism, or a natural disaster.

Both collision and comprehensive insurance are typically required for a car loan or lease, even though they are not mandated by state law. The coverage limits for these insurance types are determined by the value of your vehicle and the deductible amounts you select. If your vehicle is totalled, the maximum payout is usually the actual cash value of your vehicle minus your deductible.

Frequently asked questions