Required Auto Insurance Liability Coverage in Maryland

Reader’s Question:

What are the liability auto insurance coverages under the Baltimore, Maryland car insurance law? How do these liability coverages vary from each other?

Angel

Baltimore, MD

Liability insurance protects drivers with insurance policy when they have caused an accident. There are two types of liability coverage that are required by Maryland State law; these are bodily injury liability coverage and property damage liability coverage.

Under Maryland car insurance law, if you cause an accident and an injured person makes a claim or files a lawsuit against you, Bodily Injury Coverage will pay for a lawyer to defend you if you are sued; and pay the amount of medical expenses, lost wages, and pain and suffering that you are legally responsible to pay to another person (up to the policy limits); or pay an amount to settle these claims (up to the policy limits). In other words, if the claim against you is covered by your bodily injury insurance in Baltimore, MD, then (up to the dollar limits of the coverage that you purchased) your personal assets will not have to pay for claims or lawsuits filed by any injured person.

Under Maryland car insurance law, if you cause an accident that damages someone’s property and the property owner makes a claim or files a lawsuit against you, Property Damage Liability coverage will pay for a lawyer to defend you in the event that you are sued; and pay the amount of physical damage that you caused to vehicles or property that you do not own (up to the policy limits); or pay an amount to settle these claims (up to the policy limits). In other words, if the claim against you is covered by property damage liability insurance, then (up to the dollar amount of the limits of the coverage that you purchased) you will not have to use your personal assets to pay claims or lawsuits filed by the property owner/s.