Maryland Car Insurance: Requirements for Residents

Every state has its own set of guidelines regarding car insurance. For complete information on Maryland’s requirements consumers can contact the Maryland Insurance Administration in Baltimore at 1-800-492-6116 or by visiting their website, http://www.mdinsurance.state.md.us.

Maryland is one of the few no fault states that requires its residents to carry PIP, or Personal Injury Protection, coverage. Personal injury protection will help pay for medical expenses, lost wages and funeral expenses if necessary following an accident. In addition to PIP it is required that all residents carry liability insurance. Liability will pay for damages to the other driver, any passengers and the other vehicle in the event of an accident for which the insured is responsible. MD allots up to twenty thousand dollars for the medical expenses of a single occupant, forty thousand dollars the combined medical expenses of all of the individuals in the vehicle and fifteen thousand to pay for any property damages resulting from the accident. This includes repairs to the other vehicle.

Although it is not required it is strongly recommended that all individuals maintain a collision/comprehensive coverage on their vehicle. Liability will only pay for the vehicle damages of the person not responsible for the accident; the other driver will be left solely responsible for repairs to their own vehicle. Comprehensive coverage will pay for necessary repairs, as well as total the vehicle if repairs exceed the vehicle’s blue book value. Comprehensive coverage will also be applied to any vehicular damages inflicted by running into a stationary object, such as a parked car or guardrail, and for any incidents involving the local forest residents.

Uninsured/underinsured motorist coverage is required for all MD drivers. Not every state in the US requires that its drivers carry a liability policy, as foolish as that may seem. As a result it is inevitable that at some time a driver with no insurance will be on Maryland roads and cause an accident, particularly because its neighbor, the state of Virginia, is among the states that do not require a driver to carry liability. In the event that a Maryland resident is involved in this accident, uninsured/underinsured motorist coverage will facilitate repairs to their vehicle and any medical expenses incurred. This also applies to a driver whose insurance is insufficient to cover the amount of damages or any resident that finds themselves the victim of a hit and run.