How To Buy Maryland Car Insurance

If you are a resident of the state of Maryland and are looking to purchase or renew your vehicle insurance policy, the following information will be of great help! We've covered the basic insurance coverage requirements as mandated by Maryland law, tips on how to get the best insurance rates, insurance options for high-risk drivers, optional and supplemental coverage which can enhance your insurance coverage and information on what you need to know about how insurance companies underwrite your policy.

Minimum insurance requirements in Maryland

• Liability insurance: Covers protection for accidents or damage caused, when you are deemed at fault. It includes liability of bodily injury and liability for property damage. As per Maryland insurance requirements, the minimum coverage for bodily injury liability is $20,000 per person, $40,000 for bodily injury in each accident (if more than one person involved is injured) and $15,000 for property damage liability. Bodily injury liability covers legal expenses incurred if a suit is filed against you; cover payments which are entered in judgment against you; or to settle claims ‘out-of-court.' Property damage liability also covers similar risks as in bodily injury liability.
• Uninsured/underinsured driver coverage: This limits your exposure in case you meet with an accident where the other driver has no insurance or hits and runs, or has insurance, but it is insufficient to cover all your claims. Uninsured/underinsured motorist coverage provides payment for property damage, medical expenses in case you or your passengers are injured and also provides cover for expected losses in wages, pain and suffering caused by the accident. The minimum coverage required in Maryland is $20,000, $40,000 and $15,000 for bodily injury per person, bodily injury per accident and property damage respectively.
• Personal Injury Protection (PIP): This provides for reimbursement of expenses incurred by you towards reasonable medical treatment and expected loss of wages, for all members listed under your insurance policy. In Maryland, minimum PIP coverage required is $2,500 per person listed in the policy and is paid out irrespective of who is responsible for causing the accident. You can opt to take a higher amount of coverage per person, if you can afford it or waive PIP coverage altogether. PIP reimbursements are made only if you file your claim within the prescribed time and as per prescribed rules set by the insurance company.

Optional and Supplemental Coverage

• Collision and Comprehensive coverage: Collision coverage deals with the claims filed on account of damage to the vehicle(s), on account of an accident, malicious damage or theft of the vehicle. Comprehensive coverage covers other incidents or causes for damage to your vehicle, barring what is already covered under collision coverage. This could be due to natural or unexpected causes such as fire, floods, storm damage, etc. Both types of coverage pay out for the expenses incurred towards repairing the damages or the actual value of the vehicle if it is totaled, prevalent at the time of the damage. You can lower your premium costs by opting to pay a higher deductible towards collision and comprehensive coverage or vice versa.
• Coverage for medical expenses: Expenses incurred towards treatment or funeral costs for you and other listed in your policy in case of injury or death in an accident. Medical expenses towards surgical, dental, chiropractic, rehabilitative, prosthetic or other related expenses are covered, as also funeral costs in case of death. The coverage also pays out for expenses incurred in engaging nursing or home care services as a consequence of the accident.
• Reimbursement of rental costs: This coverage pays out the costs incurred in hiring a rental vehicle for the period your car or vehicle is out of commission. The payment is made for a fixed daily rate over a fixed period as per the terms of your policy.
• Alternative transportation costs: Provides for expenses incurred in engaging or securing alternative transport as a consequence of the damage to your vehicle.
• Towing and labor charges: Self-explanatory, but may not be necessary if you are a member of an auto club, such as AAA.
• Mechanical damage: Covers expenses incurred in repairing the vehicle on account of mechanical failure. This is less expensive than buying an extended warranty from the car dealer at the time of purchasing a new vehicle.

Tips to get the best possible insurance rates

• Shop around by contacting as many insurance providers or agents as possible.
• Provide the same information to each agent/provider in order to get comparable quotes.
• Check with your friends or family for their recommendations; browse the Internet to get information on insurance rates and quotes.
• Determine the insurance coverage you need and how much you can afford by way of premiums beforehand.
• Find out information on deductibles and discounts offered by the insurance provider.
• Ensure that you check with the Maryland insurance authorities and verify that your chosen provider is licensed to provide insurance services.

Insurance options for high-risk drivers

Many auto insurance companies avoid insuring drivers who are considered ‘high risk.' This category could include drivers with a poor driving record, long history of accidents or traffic violations, etc. However, Maryland law mandates that every resident should have auto insurance, irrespective of their driving record. You can check for information on companies and agents who specialize in insuring high risk drivers or approach the Maryland Automobile Insurance Fund (MAIF) for assistance. Details are available at the Fund's website http://www.maif.state.md.us/ or you can call the toll-free number 1-800-492-7120.

Make a note of the information provided in this article, before you set out to buy car insurance in Maryland.