car insurance requirements maryland

Liability car insurance protects you against the cost of damage and injury that you cause to another in an automobile accident.

It’s actually made up of two different policies, bodily injury liability, and property damage liability. As you might guess, bodily injury insurance protects you from the cost of personal injury to others, and property damage insurance protects you from the cost of damage you cause to any physical property.

You’ve probably seen automobile policies described by three numbers (like 50/100/25). These numbers refer to auto liability insurance.

They’re usually called the split limits of liability insurance. Under our example auto liability insurance policy, you’d be covered for up to:

• $50,000 worth of bodily injury caused to another person
• $100,000 for bodily injuries caused to everyone
• $25,000 worth of property damage

Your state’s car insurance laws will require a certain level auto liability insurance. You can find your state’s auto insurance requirements here.

Even though it may be tempting to save a few bucks by going with the minimum liability required in your state, it is always worth investing in a little extra protection.

Medical Payments Insurance

This policy provides for the immediate treatment of injuries caused by a car accident. You, your family members and other passengers in your vehicle are covered, regardless of who is at fault for the accident. Depending on the specifics of the policy, medical payments coverage may also compensate for lost wages or services of a person injured in the car accident.

PIP, or personal injury protection, is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering.

Most states that require personals injury protection are “no fault” states, but Maryland, Delaware, and Oregon also do. You can find out your state’s auto insurance laws and minimums here.

Save on Collision and Comprehensive

The best way to save money on car insurance is to keep a high deductible on both of these policies.

A low deductible may seem to be worth the comfort of never having to fork over $500 or $1000 for car repairs before your insurance kicks in. But it usually isn’t.

Consider that raising your deductible by as little as $250 can buy you a couple hundred thousand dollars more worth of liability coverage. Which will make you feel more secure? Paying even $1000 for repairs beats paying 100 times that for someone else’s hospital bills!

And a lot drivers are paying for these types of coverage when they really shouldn’t be. If you’re driving an older car with a very low resale value, the cost of comprehensive and collision coverage’s for a couple of years may be costing you more than the car is worth!

For cheaper car insurance, consider dropping these policies altogether, especially if you have a poor driving record that inflates your rates. These policies are not worthless. If you drive a new car, you need them. But you shouldn’t carry them in place of reasonable levels of other types of coverage. See how low your premiums can be.

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