Understanding Maryland Car Insurance Laws

Purchasing Maryland car insurance does not need to be confusing. On a basic level, car insurance helps to protect you and your family from financial difficulties caused by car repairs, doctor bills and lawyer fees in the event of an accident.

When purchasing a, insurance policy for you car or cars it is important to speak with a licensed insurance agent who is knowledgeable in the type of coverage you will need and can explain them in plain language. According to Maryland state law, insurance minimums consist of bodily injury liability of $ 30,000 for each individual that is injured, not to exceed $60,000 per accident. Property damage liability has a minimum limit of $15,000. Together this type coverage is referred to as 30/60/15 coverage with 30/60 UM limits.

Maryland follows a system called Tort, which means that someone needs to be found at fault for an accident that occurs and that person and Insurance Company will be held responsible for any damages. For you and your drivers, personal injury protection is required to pay for any medical expenses that are considered within reason and necessary and a result of the accident.

A major concern for many is being in an accident with another driver who is not insured. To help protect you against damages in this case, it is required, by Maryland state law that you have a minimum Uninsured/under-insured Motorist coverage of $30,000. This type of coverage can be some of the most important, as rates continue to rise many will attempt to go without coverage, in turn putting other drivers at risk.

Understanding Maryland car insurance is also important when it comes to ensuring new drivers, such as teenagers. To be legally covered, a teen driver needs to have minimum liability coverage of 20/40/15, meaning $20,000 for bodily injury per person, $40,000 for bodily injury per accident and $15,000 for property. Since it is known that teens are more apt to have an accident in their first year of driving, it is advised to obtain a higher amount of coverage, similar to that required for adults.

Due to the higher cost of coverage for teens most states, including Maryland, will offer discounts on car insurance for teen drivers, for instance 10% - 15% discount for maintaining a B average in school and/or completing a safe driver course. Many schools now offer safe driver courses to students to both help them become safe drivers and save parents money.

Purchasing Car insurance can be a daunting task, so it is important to be well informed and educated on what is required by law and what is best for your family. In 2010, rates were at an average price of $2,111, when compared to a national average of $1,538. With these high rates it is believed that many of these companies set their prices, so shopping around is often seen as a waste of time.

These companies, however, each set their rates differently, so what one company offers can often be significantly less than another, so it does pay to compare prices. With more than 200 companies licensed to sell Maryland Car insurance, there is no shortage in finding exactly what you need.

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