Is Maryland a no-fault car insurance state?

After you have been involved in an accident, you may prepare to call your insurance company and begin the claims process. However, depending on which state you live in, the decision about whether to call your insurance company or the other party’s insurance company must be considered.

Some states are considered to be no-fault states In a no-fault state, you can file a claim for an accident under your own insurance policy, and you are not dependent on another party’s coverage to pay for your expenses. This is in opposition to a tort state.

If you live in a tort state, fault for each accident is determined, and the responsible party’s insurance must pay for the accident. This includes vehicle repairs, medical bills, and other expenses associated with the accident.

A major difference between these two types of fault states relates to which party will pay for the accident. In a tort state, it may be beneficial or even required in some cases to obtain personal injury protection coverage as well as all other standard coverages you may be responsible for. This is because you may need a way to pay for your own medical expenses if you cause an accident.

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Is Maryland a No-Fault State?

You may be wondering which fault type applies to Maryland drivers. Maryland is an at-fault, or tort, state. This means that fault for the accident will be determined. The liable party will pay for all expenses, and this includes through their insurance coverage as well as through their personal funds, if necessary.

– Pros and Cons of Living in a Tort State

In a tort state like Maryland, you will not have to worry about paying a deductible or any related expenses for an accident that was caused by someone else. This is opposed to a no-fault state, in which both parties may be independently responsible for their own damages and expenses without determining fault for the event.

On the other hand, there is a possibility that you could be involved in an accident caused by an uninsured driver in a tort state.

When this happens, you may need to file a personal injury lawsuit against the other party to obtain the funds that you are legally entitled to.

Another option is to file a claim under your own coverage using uninsured insurance benefits, but you will need to pay a deductible when you file the claim under your own policy.

In Maryland, drivers are legally required to obtain bodily injury or death coverage as well as property damage coverage. These are liability insurance requirements, so they pay for the expenses that you create for another party rather than for your own expenses from the event. Additional coverage may be purchased to pay for your own medical bills, car repairs, and other expenses.

Auto Insurance in Maryland

The coverage requirements and limits vary by state, so it is important that you learn about the requirements in Maryland before driving in this state. Maryland drivers are required to carry liability coverage that includes:

• $15,000 coverage for bodily injury
• $30,000 coverage for bodily injury for one person
• $60,000 coverage for bodily injury per accident if more than one person is involved

– Penalties for Driving Without Insurance in Maryland

Be aware that you must have coverage at all times, or you may face numerous penalties. If you have recently moved to Maryland, you should adjust your coverage and properly register your vehicle with the state.

On the other hand, if you are canceling your coverage without buying new coverage with another insurer, you must first turn in your license plates to the state if you want to avoid penalties.

If you are caught driving without insurance in Maryland, you may face numerous penalties. These include:

• A $150 fine for the first seven days you are driving without coverage and $7 per day for each additional day thereafter. The maximum fine amount is $2,500.
• Your vehicle registration will be suspended. If you are caught driving without property vehicle registration, your car may be impounded.
• The fine may be sent to a collections agency if you fail to pay in a timely manner.
• This could potentially impact your credit rating. It could also result in a hefty collection fee being charged and the filing of your personal income tax return.

Finding the Best Car Insurance Coverage in Maryland

As you can see, you need to obtain at least a minimum amount of car insurance in Maryland to comply with the law and to avoid facing these hefty fines and penalties.

More than that, you need coverage to avoid financial loss related to an accident that you may cause or if you are in an accident caused by an uninsured driver. Because of this, many drivers in Maryland will purchase more than the minimum amount of coverage required.

A smart idea is to review your existing coverage every six months to determine if your coverage needs have changed. You should also request at least three or four new quotes from reputable car insurance providers at this time to ensure that you have the best deal possible.

– Check the Health of the Provider

Select your insurance providers with care, and focus your attention on the providers’ financial health. You can use these top rating websites to learn more about the options before requesting quotes:

• Standard & Poor’s Insurance Ratings Services
• Moody’s Investor Services
• Fitch Ratings
• AM Best

While you want to work with a car insurance company that is financially sound, you also want to receive excellent customer service from your insurer. With this in mind, turn your attention to consumer websites to learn more about each company as well. Some great resources to use include:

• JD Power
• Consumer Reports

– Look For Savings Opportunities

While you may be focused on setting up a protective car insurance policy with a great insurance company, you also may need to keep this expense to a minimum.

Some insurance companies provide numerous discounts that you may qualify for to save money on your premium. While these discounts vary by provider, some of the more common types of auto insurance discounts available include:

• A discount for anti-theft equipment in the vehicle
• Savings for taking a driver education course recently
• A good driver discount for having a clean driving history
• A good student discount for making good grades
• A multi-line discount for bundling your life or home insurance with your auto insurance
• A multi-vehicle discount for having two or more vehicles insured under one policy

With how severe the penalties are for driving without the proper coverage in Maryland, it is important that you review your existing coverage today. Now is the time to make any updates and revisions necessary to obtain the coverage you need. What better way to update coverage that comparison shopping with our free quote tool below!