Even though Maryland only requires 30/60/15 in liability insurance, drivers should consider buying more coverage if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference. And no matter what, you should be sure to fulfill the minimum Maryland car insurance requirements to avoid facing consequences for driving without insurance.
Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder’s own injuries or property. For instance, collision insurance covers damage to the policyholder’s car regardless of fault. And comprehensive insurance pays if the policyholder’s vehicle is damaged by something besides an accident, like a natural disaster or vandalism.
You need enough liability insurance to cover the full value of your assets. Your bodily injury liability coverage should be as much as your net worth, while your property damage liability insurance can be slightly lower since property damage claims are usually less expensive. Purchasing enough liability insurance to cover the value of your assets protects you from financial ruin if you cause a serious car accident.… read full answer
When to Carry Only the Minimum Liability Coverage
Although almost every state requires drivers to carry liability insurance, the minimum coverage is not always enough to cover the cost of an accident. It’s always best to carry as much liability coverage as you can afford, especially if you have a high net worth.
If you don’t have many assets or think the risk is worth it, you might be comfortable with carrying only the minimum coverage. But no matter what, make sure you’re carrying enough insurance to comply with state law and avoid paying fines for driving uninsured.
Liability Limits on Auto Insurance
Liability limits on auto insurance are the maximum amount that your insurance company will pay for injuries and property damage in accidents that you cause. Liability limits are typically written as three numbers divided by slashes.
For example, Arizona’s liability coverage requirements are 50/30/10. That means drivers need to carry $50,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage overall.
Why You Need More Liability Insurance Than the State Minimum
Your insurance company will never pay for anything beyond the limits of your policy. Using the Arizona example, if you cause an accident that leads to $70,000 in medical bills for the other driver, you will have to pay for $40,000 if you are only carrying the minimum insurance required. And if you can’t afford to pay the full amount, the other driver can sue, and you can have your assets seized or wages garnished to cover the remainder.
Yes, uninsured motorist coverage is required in Maryland. Drivers in Maryland must purchase at least $30,000 in uninsured motorist bodily injury coverage per person (up to $60,000 per accident), as well as $15,000 in uninsured motorist property damage insurance per accident. Additionally, Maryland drivers need $30,000 in underinsured motorist bodily injury coverage per person (up to $60,000 per accident) and $15,000 in underinsured motorist property damage insurance per accident.… read full answer
Uninsured/underinsured motorist insurance covers a driver’s medical bills and repair costs after an accident if the at-fault driver doesn’t have enough coverage to pay for the damage. Normally, a Maryland driver can collect damages from the at-fault driver’s liability insurance. However, if the other driver is uninsured, getting compensation can be time-consuming or nearly impossible. That’s where uninsured motorist coverage can help. Instead of having to file a lawsuit, you can file a claim with your own insurance company in order to pay your bills and get the repairs or treatment you need without waiting for the courts.
Even though car insurance is required in Maryland, an average of 12% of drivers in the state don’t have car insurance. Car accidents in Maryland can be extremely expensive, too. For example, fatal accidents in Maryland have a total cost of $690 million each year. As a result, uninsured motorist insurance is a smart investment for Maryland drivers.
Key Facts About Uninsured Motorist Coverage in Maryland:
Minimum Uninsured Motorist Bodily Injury: $30,000 per person and up to $60,000 per accident
Minimum Uninsured Motorist Property Damage: $15,000 per accident
Minimum Underinsured Motorist Bodily Injury: $30,000 per person and up to $60,000 per accident
Min Underinsured Motorist Property Damage: $15,000 per accident
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.… read full answer
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.
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