Understanding Maryland Auto Insurance Liabilities Coverage

To drive legally in Maryland, you need a valid driver's license and car insurance that meets the state's minimum requirements. The minimum amount of Maryland auto insurance coverage is $30,000 per person and $60,000 per accident for bodily injury, and $15,000 per accident for property damage. Maryland law also requires uninsured motorist coverage and personal injury protection (PIP) to be included in every car insurance policy, unless the customer waives it in writing.

Bodily injury liability coverage

In Maryland, drivers are required to carry liability insurance coverage and uninsured motorist coverage to register a vehicle. The minimum amount of bodily injury liability coverage required in Maryland is $30,000 per person and $60,000 per accident. This means that if you are found legally responsible for a covered accident, your insurance will cover the bodily injury expenses of the other parties involved, up to $30,000 per person, with a total maximum of $60,000 per incident. This coverage also includes legal fees in the event that the other party sues you, up to the stated limit.

In addition to the minimum required bodily injury liability coverage, Maryland drivers are also required to carry uninsured motorist coverage with identical limits. This type of coverage protects you and your passengers if you are hit by an uninsured or underinsured driver or if you are the victim of a hit-and-run driver.

While the minimum bodily injury liability coverage required in Maryland is $30,000 per person and $60,000 per accident, it is worth considering purchasing higher limits. Higher limits are available for an additional premium and can provide you with additional protection in the event of a serious accident. By increasing your bodily injury liability coverage limits, you can ensure that you have sufficient financial protection if you are ever involved in a car accident.

It's important to remember that liability coverage does not cover your own injuries or vehicle damage in a car accident. For that, you would need to purchase additional coverage, such as collision coverage or personal injury protection (PIP). Collision coverage is optional in Maryland but may be required by your car loan lender. PIP coverage, on the other hand, is required unless you waive it in writing. It covers medical expenses and lost income for you and your passengers, up to a certain limit, regardless of who is at fault for the accident.

Property damage liability coverage

The minimum amount of property damage liability coverage required in Maryland is $15,000 per accident. This means that if you are found legally responsible for an accident, your insurance provider will cover the cost of damages to another person's property up to $15,000. This coverage can also help pay for property damage to your vehicle if you are legally entitled to it from another driver who is not insured or is underinsured.

You may want to consider purchasing higher limits than the state-mandated minimum to better protect your assets. Higher limits are available for an additional premium.

Uninsured/underinsured motorist coverage

Uninsured motorist coverage comes into effect when you are hit by a driver who does not have any auto insurance. This coverage ensures that your medical bills and vehicle repairs are taken care of without having to pay out of pocket. It typically includes uninsured motorist bodily injury (UMBI) coverage, which pays for medical expenses for you and your passengers, and uninsured motorist property damage (UMPD) coverage, which takes care of repairs to your vehicle.

Underinsured motorist coverage, on the other hand, comes into play when the at-fault driver does not have sufficient insurance coverage to pay for the damages they have caused. This can include situations where the injuries or damages from an accident exceed the limits of the at-fault driver's policy. Underinsured motorist coverage includes underinsured motorist bodily injury (UIMBI) and underinsured motorist property damage (UIMPD), which function similarly to their uninsured motorist counterparts.

In Maryland, the minimum requirements for uninsured/underinsured motorist coverage are $30,000 for bodily injury or death per person, $60,000 for bodily injury or death for multiple people, and $15,000 for property damage. These limits are identical to the state's liability coverage requirements. It is important to note that you can purchase coverage above the minimum from your insurance company or agent if you want additional protection.

While Maryland mandates certain coverage limits, it is beneficial to consider your specific needs and choose the insurance limits of your coverage accordingly. For instance, for bodily injury coverage, you may want to match the amount with your liability coverage limits. As for UMPD, you can select a limit that aligns with the value of your vehicle, especially if you do not have collision coverage.

Personal injury protection (PIP)

In Maryland, PIP covers medical expenses and lost income for the policyholder and their passengers, up to $2,500 per person. It is important to note that PIP does not cover property damage. Maryland law allows policyholders to waive PIP coverage in writing if they choose to. However, even with a waiver, household relatives under 16 years old and certain others will still be covered.

PIP provides peace of mind by ensuring that, in the event of an accident, you and your passengers can receive prompt medical attention and some compensation for lost income without having to determine fault. This coverage can be especially valuable in states like Maryland, which follows a fault-based insurance system where the at-fault driver is responsible for paying for the other party's damages.

While PIP provides essential coverage for medical expenses and lost income, it has limits. If the cost of necessary medical care exceeds the PIP limits, health insurance may cover further expenses. Additionally, PIP policies have a per-person maximum coverage limit, which means that coverage is limited to a certain amount per person if multiple people are injured in a single accident.

In summary, Personal Injury Protection (PIP) is a crucial component of auto insurance in Maryland, providing coverage for medical expenses and lost income for those involved in car accidents, regardless of fault.

Collision coverage

Even if you are a safe driver, collision coverage can provide valuable protection in case of unexpected events. For example, if you hit a patch of ice and slide into a guardrail, or if a tree branch falls on your car during a storm, collision coverage would help pay for the repairs. It can also provide financial protection if you are in an accident with an uninsured or underinsured driver. In these situations, collision coverage can ensure that you are not left paying for the full cost of repairs or a new vehicle out of your own pocket.

In addition to collision coverage, comprehensive coverage is another option that can protect your vehicle. Comprehensive coverage pays for damage to your car from causes other than collisions, such as theft, fire, hail, or animals. Like collision coverage, comprehensive coverage can give you added peace of mind and protect your investment in your vehicle. By choosing both collision and comprehensive coverage, you can ensure that you are prepared for a wide range of unexpected events that could damage your car.

Frequently asked questions