No, personal injury protection is not required in Maryland – it is optional. Maryland drivers are automatically offered $2,500 in PIP insurance, which covers medical expenses and lost wages within three years of an accident, but they can reject the coverage if they choose.
Below, we provide a quick overview of Maryland’s PIP policies along with stats illustrating why the coverage is worthwhile.
PIP Insurance in Maryland at a Glance
No, PIP is optional
Minimum PIP coverage
$2,500 if purchased
Annual cost of insurance
State accident laws
National cost ranking (1=cheapest)
Drivers in Maryland who do not reject PIP coverage must file PIP claims no more than one year after the date of a crash. However, the benefits may last for up to three years after the accident. During this period, PIP will cover medical, ambulance, and funeral bills, plus reimbursement of 85% of the policyholder’s lost income.
Personal injury protection (PIP) covers the policyholder and their passengers regardless of who was responsible. Named drivers will also be covered under PIP if they are injured by a car as a passenger, pedestrian, or cyclist. PIP applies to things like medical expenses and lost wages for covered individuals.
Passengers in the car if a named driver is at the wheel
Named drivers who are injured in a car accident, even if they weren’t driving
No-fault states generally require drivers to have PIP so that they can file minor medical claims with their own insurance company after an accident, even if they were not at fault. PIP is available in some at-fault states, as well, because it’s an inexpensive way to protect against medical bills down the road.
No, Maryland is not a no-fault state for auto 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. Additionally, unlike in no-fault states, drivers in Maryland can file lawsuits to seek compensation for even basic medical expenses after an accident.… read full answer
In typical no-fault states, drivers are required to carry personal injury protection (PIP) insurance to pay for their own medical expenses after a car accident, regardless of fault. In Maryland, PIP is not required.
Key Things to Know About Insurance in Maryland
When an accident occurs, the insurance company for each driver who was involved will assign an adjuster to determine who was at fault. To collect payment for their losses, victims must file a claim with the at-fault driver’s insurance company.
Depending on how long fault takes to be determined, drivers can file a claim with their own insurance company if they have coverage applicable to their own expenses, such as collision and comprehensive Their insurer can then recoup the cost from the at-fault driver’s insurer if the policyholder is not determined to be at fault.
Maryland uses a contributory negligence system, meaning drivers can't sue if they share even 1% of the blame for the accident. If the other driver was 100% responsible, they are free to sue them.
Being an “at-fault” / “tort” state helps keep Maryland’s insurance costs relatively low, compared to no-fault states.
Maryland requires all drivers to carry liability insurance, a type of insurance that pays for others’ expenses after you cause an accident, such as damage to others’ vehicles and their medical expenses. Maryland also requires drivers to carry uninsured motorist (UM) coverage and uninsured motorist property damage (UMPD) coverage.
In addition to Maryland’s minimum coverage requirements, you may want to purchase types of coverage that will pay for your own expenses after an accident. For example, collision and comprehensive insurance will cover damage to your vehicle, regardless of fault.
Your insurance rate probably won’t go up if you use PIP coverage. Whether or not your insurance costs go up depends on who is at fault in the accident that leads to the use of PIP. When you are not at fault and you make a PIP claim, you will receive payment from either your insurance company or the other driver’s insurance, and your rate will not increase.… read full answer
However, if you are found to be at fault in an accident after which you use your PIP, your insurance rate will likely increase, in most states. This is because most insurance companies reassess policy holders’ records consistently to analyze risk. If you are involved in a car accident and you are found to be at fault, the insurance company will consider you a higher risk driver than before and will likely increase your premium as a result. The amount your rate might increase will mostly depend on your insurance company.
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