Because the financial losses from car accidents are often beyond the financial means of vehicle owners, and to ensure that victims receive compensation, Maryland requires that all vehicle owners carry three basic types of automobile insurance: liability insurance, uninsured motorist coverage, and personal injury protection coverage.
Liability insurance pays for damages caused by the insured party to others for property damage, personal injury and death. Maryland requires all motor vehicles registered in the state to carry liability insurance in the amounts of $30,000 for each person injured or killed, and $60,000 for all injury and death claims arising out of a single accident. In addition, Maryland requires all motorists to carry $15,000 in property damage liability insurance, to pay for damages to other vehicles caused by the fault of the insured.
The second type of insurance required in Maryland is uninsured motorist coverage, which we discussed in a previous post. Uninsured coverage pays for injuries or death suffered by the insured, caused by the fault of another driver who did not have insurance.
The third type of mandatory insurance in Maryland is personal injury protection coverage. PIP coverage provides up to $2,500 in medical expenses and disability payments incurred by the insured in an accident, regardless of who was at fault.
When a person suffers serious injury or death in a car accident, one of the most important tasks is determining which insurance coverages are available to provide compensation. In cases involving multiple vehicles or commercial vehicles this can be a complicated issue. An experienced personal injury attorney can help accident victims and their families navigate the insurance coverage maze.