Liability insurance protects motorists in the event of an accident.
The Maryland Insurance Administration regulates the state's insurance producers and makes sure that insurers as well as consumers abide by all insurance laws. Liability insurance protects consumers against damages to their personal property, covers medical expenses that result from an at-fault accident, and provides medical payments to others if a motorist or homeowner is held liable for an incident. Property and casualty insurance policies may cover a consumer's home, automobile or business up to the policy's liability limits.
Bodily Injury and Property Damage Liability
When a Maryland motorist purchases insurance coverage from an auto insurer, he is purchasing a contract stating that the insurer will pay for medical expenses or damages that result from a covered loss. Losses covered by an insurance company include auto accidents in which the insured is at-fault, accidents where the insured is not at fault and collisions with animals or stationery objects.
Damages paid under an insurance policy are subject to maximum limits. The state of Maryland requires that motorists carry bodily injury liability limits of at least $20,000 per person and $40,000 per accident. Bodily injury liability pays the other party in the event a driver causes damages that result in injury or death. The state of Maryland requires minimum liability coverage for property damage of at least $15,000. This coverage pays the other party in the event a driver causes damage to the other party's vehicle or personal property.
Uninsured Motorist
An uninsured motorist policy offers protection if you are injured or your property is damaged as a result of the negligence of an uninsured driver. In the event you are involved in an accident with an uninsured motorist, you will be able to collect for damages under the terms of your own insurance policy. Generally, uninsured motorist coverage matches the bodily injury and property damage liability limits of your policy. The rule of thumb is to protect yourself for the same amount you are protecting other drivers for if an incident occurs. Maryland requires drivers to carry at least $20,000 of uninsured motorist bodily injury coverage per person, $40,000 bodily injury liability per accident and $15,000 for property damage.
Personal Injury Protection
Personal Injury Protection (PIP) coverage is another Maryland insurance requirement. PIP covers reasonable medical expenses that occur as a result of an accident--regardless of fault. Expenses covered under PIP typically include medical care, hospital or emergency room visits, or disability expenses. Maximum limits are $2,500. This coverage protects the driver and her family members, as well as vehicle occupants who are not family members. Personal injury protection is often used to supplement your medical insurance. It is also ideal for protecting non-family members riding in the vehicle if you are unaware what type of medical benefits they have on their own.
Tags: bodily injury, injury liability, liability limits, Maryland requires, medical expenses, other party
