Maryland is a no-fault state for car insurance purposes. Under this system, a policyholder is compensated by his or her own insurance company for damages sustained in a car accident. The expression “no-fault” is a bit of a misnomer, since it may imply that being at fault doesn’t matter. Insurance companies do care which driver is at fault when an accident occurs, and if the level of damages is higher than a threshold set by the state, they can sue for damages.
Drivers in this state must have Personal Injury Protection (PIP) coverage in place to pay for their medical bills and lost wages following an accident. It also pays for funeral expenses in the case of a fatal accident. Two levels of PIP coverage are offered by Maryland car insurance companies: full and limited. When you ask for a quote for your coverage, be sure to ask about the type of protection you are getting under your PIP plan. You will be required to pay a $250 deductible, no matter which one you choose.
Keep in mind that if you are the at-fault driver in a serious accident, you can be sued by the occupants of the other vehicle to recover damages. Along with the PIP coverage, you must also have third party liability protection in place. This part of your policy is used to pay for injuries you cause to the occupants of the other vehicle following an accident.