Auto Insurance Matters

Liability coverage is for bodily injury and property damage. This coverage pays for damages such as medical expenses, lost income, and pain and suffering to another person if an accident is your fault. Members of your family living with you or to a person with your permission to drive your car is also generally covered as well.

If you are sued because of the accident, this coverage will pay the cost of your legal defense. Maryland law requires a minimum bodily injury coverage of $30,000 per person per accident and $60,000 total per accident. The minimum for property damage coverage is $15,000 per accident. Property damage covers damages to vehicles, fences, signs, utility poles or buildings caused by the accident.

UM coverage pays you and the occupants of your vehicle for bodily injuries or property damage arising out of an accident involving an uninsured vehicle or a hit-and-run. It will also protect you if you are a pedestrian hit and injured by an uninsured motor vehicle. Maryland requires a minimum of $30,000 uninsured motorist coverage per person, per accident and $60,000 total per accident for bodily injury and $15,000 per accident for property damage.

UM coverage also includes underinsured motorist coverage (UIM). You can get bodily injury protection if you are involved in an accident where the at-fault driver’s policy coverage is less than your UM limits, and your injuries exceed the at-fault driver’s policy limits.

PIP provides reimbursement for some types of lost income and medical expenses for injuries from an accident, regardless of fault. State law requires a minimum of $2,500. If you have health insurance coverage, you can waive PIP coverage. However, because PIP ensures that medical expenses are paid promptly it is not advisable to opt out. Some drivers pay for extra PIP coverage so they have a second source for financial assistance for accident injuries.