Liability Auto Insurance

Reader’s Question:

I am quite unfamiliar with insurance matters. What are the requirements of liability auto insurance in Baltimore, Maryland?

Troy

Baltimore, MD

The streets of Baltimore are ranked second most congested in the country next to Washington D.C. This essentially means that the odds for accidents are very high. And as such, the federal government requires much higher auto insurance coverage to effectively protect its residents from serious financial losses after an accident.

Liability insurance has to be 20/40/15. $20,000 pays for the medical expenses of one person, $40,000 for hospital bills if there were two or more passengers in the other motorist’s car, and $15,000 to pay for all destruction to property. Additionally, MD requires that Uninsured/Underinsured Motorist Insurance be obtained by every driver. This insurance also has to adhere to the 20/40/15 coverage just like the liability auto insurance. Personal Injury Protection (PIP) is another obligation even if MD does not follow the no-fault law. PIP should be at $2,500 for each individual listed in the policy. Some elect to obtain just the minimum levels of PIP because they have an excellent health insurance plan. Although this will definitely be allowed, just remember that any lost wages will not be provided by your health insurance. In the end, the best rule to follow when buying auto insurance is to get as much protection as you can afford.