Maryland is one of the few states that offers is residents the option of no-fault car insurance. In most states, when an accident occurs, it is the responsibility of the person at fault or their insurance to cover the damages. In Maryland however, in the event of a car accident, the victim’s policy is also able to pay for medical care, damage to property and so on without having to suffer an increase in premiums. The state still requires each river to have a minimal amount of coverage to drive legally.
There are several different types of coverage classes, to help better understand the state requirements of Maryland, please read the information below:
Liability for Property Damage
This type of insurance helps to cover the cost of any damage caused to the vehicles or other surrounding property at the place of the accident. In Maryland, the least PDL coverage amount is $10,000. This amount is what goes towards repairs on the other parties’ car and surrounding damage.
Liability for Bodily Injury
This type of insurance helps to cover the cost of medical care for opposite party when you are the one responsible for the crash. In the state of Maryland, each driver is required to have coverage which allows for $25,000 per person and $50,000 for multiple parties in a single crash. This amount is what goes towards the funeral expenses in event of death, work wage loss, and the cost of rehab for the opposite party of the crash.
Liability for Personal Injury
This type of coverage is systematic to Maryland system which allows for no-fault policies. This type of insurance helps to cover the cost of medical treatment to the driver regardless of fault. The policy also covers the passengers of the car, regardless of fault. In Maryland, the minimum PIP coverage amount is $5,000 for each person, along with $2,000 allocation for funeral services in the event of death and a maximum of $900 monthly for wage loss. These are the minimums; however, you can increase your coverage at any time to cut the amount of personal expense you will have to bear in the event of a crash.
Collision Auto Coverage
Collision coverage allows you to pay for the cost of damage to your motor vehicle, collision and comprehensive is in place to cover the damages to your car in a crash, or another type of accident such as damage from theft, the fire of floods. Most residents have one or other, while cars that are financed are often required to carry both. The deductible is calculated based on the coverage amount and can range anywhere from 1,00 to 1,000 dollars. When there is damage to your car, and a claim is filed, the insurance company will pay the amount that exceeds the deductible.
Maryland Insurance Pricing
Even with the creative law structure surrounding the insurance requirements of Maryland, the overall price of becoming insured in the state is not much different than the rest of the nation. In fact, many motorists pay about $200 less than average for a whole year of insurance. As with most urban areas, the rates tend to run higher, but still, fall under the average for cities with the same demographics.
You can get better rates on your collision insurance in Baltimore Maryland by speaking with your agent. Most companies offer discounts to those who have completed drivers ED courses, have low mileage on their insured cars, and have installed any type of anti-theft device. Shopping around is also a good way to find the best rates available based on your driving record. Drivers with better credit are also offered better rates, so make sure your score is at least 675 before you purchase a new policy.