Auto Insurance Policy Summary

​Required Coverages: Liability Coverage
Bodily Injury Liability: Covers injuries to others when you're at fault. Maryland requires:

• $30K per person
• $60K per accident

Property Damage Liability: Covers damage to others’ property (vehicles, fences, mailboxes, etc.):

• Minimum $15K per accident

Liability also includes legal defense costs if you're sued. Drivers are free to purchase higher limits for better protection . 
Uninsured/Underinsured Motorist (UM/UIM)Covers your injuries and vehicle if hit by someone uninsured, underinsured, or in a hit-and-run. Maryland mandates limits matching liability

• $30K/$60K bodily injury
• $15K property damage

This is crucial since only one in seven drivers nationwide may be uninsured

Personal Injury Protection (PIP)

• Covers your medical bills and lost wages regardless of who caused the accident.
• Maryland minimum: $2,500 per person. You can choose more or waive PIP in writing 
• Full PIP covers all, age 16+, lost wages (~85%), and medical; limited PIP excludes some household member

2. Optional (Additional) Coverages: Not required by law but often essential for full protection:

1. Collision Coverage – Repairs/replaces your vehicle after an accident, regardless of fault; subject to deductible 
2. Comprehensive Coverage – Covers non-collision events: theft, vandalism, weather, fire, wildlife damage 
3. Rental Reimbursement – Pays for rental car expenses while yours is being repaired (often ~$25/day up to ~$750/claim) 
4. Transportation Expense – Covers alternate transport (bus/train) if vehicle is unusable .
5. Towing & Roadside Assistance – Covers towing, battery jump, locksmith, fuel delivery, flat tire, coolant
6. Medical Payments – Covers medical expenses regardless of fault, independent of PIP
7. GAP Insurance – If your car is totaled and you owe more on the loan than it's worth, GAP covers the difference 

 3. Other Add-Ons & Considerations

• Usage-Based / Pay-As-You-Drive (UBI/PAYD): Low-mileage or safe drivers can get discounts through telematics programs
• Umbrella/Excess Liability: Provides higher liability limits above auto policy—useful as claim costs rise
• Mechanical Breakdown / Repair Insurance: This covers wear-and-tear failures post-warranty, distinct from collision/comprehensive

4. Waivers & Lender Requirements

• You can waive PIP in writing—many insurers require this if you have adequate health insurance
• Lenders/leasing companies usually require collision and comprehensive until the vehicle is fully paid off .

5. Maryland Enforcement & Penalties

• Minimum coverage: 30/60/15 liability, UM/UIM same, $2,500 PIP or waiver 
• Non-compliance consequences:
  • Fines: First month ~$150, then ~$7/day, up to ~$3,500/year
  • License plate/registration suspension
  • Impoundment, reinstatement fees, and blocked renewals 

 6. Choosing the Right Plan

• Match coverage to your situation: If vehicle is financed, add collision/comprehensive. Low mileage? Use UBI/PAYD.
• Consider higher liability limits – many experts suggest 100/300/100 for better asset protection 
• Shop & Compare annually: Leverage online brokers (Zebra, CarInsurance.com) to compare and seek discounts like multi-policy, good driver, or safety features
• Adjust deductibles: Higher deductibles lower premiums—you'll pay more out-of-pocket for claims 
• Bundling can yield 5–20% savings on auto + home

Final Tips for Maryland Drivers

1. Meet state minimums: Liability + UM/UIM + PIP/waiver = required foundation.
2. Fill gaps: Add collision/comprehensive especially if leased or financed.
3. Consider extra protection: Rental, towing, medical payments, GAP.
4. Shop smart: Compare quotes, adjust deductibles, use discounts, reassess yearly.
5. Protect your assets: Higher liability limits and umbrella insurance can be very valuable.