In Maryland every vehicle is supposed to carry at least minimum insurance coverage. Failure to do so can result in hefty fines and penalties. But is the minimum insurance really enough? Before you can determine whether or not you have ample coverage, you need to understand the various types of coverage.
Limited liability law requires minimum coverage of at $30,000 for bodily injury to one person, $60,000 bodily injury for each accident and $15,000 for property damage. These coverages are designed to protect you in the event you hurt someone else and need to compensate the person you injured.
Uninsured motorists coverage insurance compensates you for personal injury and property damage you suffered in an accident with an uninsured or hit-and-run driver. Where another driver strikes you and does not have sufficient coverage to make you whole, you would need to make a claim against this coverage.
Personal injury protection (PIP) insurance reimburses you for medical expenses and lost wages caused by the accident, regardless of who was at fault.
Physical damage coverage insurance pays for all types of vehicle damage such as theft, vandalism, flood or other criminal or weather related incident.
Collision coverage insurance pays for car repairs or worth of totaled vehicle regardless of who caused the accident.
Bodily injury liability insurance pays expenses and damages arising out of an auto accident lawsuit filed against you for personal injury.
Property damage liability insurance pays expenses and damages arising out of an auto accident lawsuit filed against you for property damage.
This list is not all exhaustive. In fact, the Consumer Guide to Auto Insurance can provide additional information and tips to purchasing adequate insurance. Failure to have the enough insurance could result in expensive repercussions. Not having adequate insurance could result in out-of-pocket expenses or even the cost of having to replace a vehicle that was damaged in an accident. It's is always a good idea to understand what your insurance options are and make sure you have the right kind and amount of insurance coverage.