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. Maryland is a tort state, which means the at-fault driver in an accident uses their liability insurance to pay for other people’s medical bills and repair expenses up to the limits of the policy. Drivers in Maryland do have the option to purchase personal injury protection (PIP) insurance to pay for their own injuries after an accident, but the state does not limit their ability to sue an at-fault driver for compensation. As a result, Maryland is a type of tort state that is often referred to as an “add-on” no-fault state.… read full answer
In tort states like Maryland that give drivers the option to purchase PIP, you can get the quick payout of a no-fault state while still being able to sue the at-fault driver for your expenses, including pain and suffering. Without PIP, you’ll have to wait for fault to be determined before you can have your medical expenses covered by the at-fault driver’s insurance company.
How Fault Affects Lawsuits in Maryland
In Maryland, it’s possible for fault to be shared by drivers. Specifically, Maryland has contributory negligence laws. This means that if you contributed to causing the accident in any way, regardless of how much of the fault is yours, you cannot sue another driver who may also be at fault. Maryland has a statute of limitations of 3 years after a car accident. That means that you have 3 years from the time of the accident to sue the at-fault driver, or vice versa.
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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