Understand Maryland’s Insurance Requirements
Know what’s mandatory in Maryland. The three mandatory coverages are Bodily Injury and Property Damage Liability coverage (BI/PD), Uninsured/Underinsured Motorist coverage (UM/UIM), and Personal Injury Protection (PIP).
BI/PD Liability pays for injuries or other damage you cause in an accident, up to the limit on your policy. UM/UIM pays for injuries to you or your passengers caused by an uninsured or underinsured driver. Uninsured Property Damage coverage (UMPD) pays for damage to your car caused by an uninsured driver. PIP pays for medical expenses and lost wages due to an accident, regardless of who was at fault.
Optional coverages offer important protection. Medical Payments coverage pays for medical and other expenses from an accident regardless of fault, and the coverage begins after PIP coverage runs out. Comprehensive and Collision coverages protect your car from damage, theft or other loss that’s not caused by another driver.
Keep Your Insurance Current
It’s the law. The minimum liability requirement for Maryland is 20/40/15 which is $20,000 bodily injury coverage per person, up to a total of $40,000 for everyone injured in an accident, and $15,000 for property damage. The minimum for UM/UIM coverage is also 20/40/15, while the minimum for PIP is $2,500.
If you fail to insure your car, you face a mandatory minimum fine of $150 for the first 30 uninsured days, plus $7 a day for each day thereafter, up to $2,500 per year. In addition, Maryland requires insurance companies to report policy cancellations, and you must show proof of insurance via an Financial Responsibility Filing if yours is cancelled or nonrenewed.
The Minimum Is Not Enough
Understand when to buy more. While minimum limits of liability coverage will keep you legal, the amount of coverage you buy should match the financial risk you face if you’re responsible for an accident. If you’re a homeowner, you’ll want to protect your investment by buying more than the Maryland state minimum limits.
Always buy Full PIP to protect yourself and your passengers by ensuring prompt payment of medical expenses and lost wages. Although you can purchase "Limited PIP" for a lower premium, this option does not offer as much protection as full PIP, such as lost wages coverage.