Auto Insurance in Maryland Key Terms

Familiarize yourself with key terms relating to auto insurance in Maryland

Having auto insurance can help protect you from losses in connection with car repair, medical bills and legal claims associated with auto accidents. Auto insurance guidelines vary by the state in which you live or conduct business. If you are a resident or conduct business in the state of Maryland, it’s important that you familiarize yourself with key terms relating to auto insurance in Maryland to ensure compliance with state insurance laws. Maryland requires all drivers to meet the state minimum insurance requirements. Learn the key terms for auto insurance in Maryland to make sure you fully understand and comply.

 

Bodily injury liability limits

Bodily injury liability limits are the minimum amounts of liability coverage that you can purchase. Limits of liability vary from state to state. The basic limits of liability in Maryland are $20,000 per person, $40,000 per accident and $15,000 for property damage.
Try: Read more about bodily injury liability limits at Car Insurance.com.

Uninsured/underinsured motorist

This type of coverage pays the policyholder and any passengers for bodily injuries caused by the owner or operator of an inadequately insured car. Maryland requires that all vehicle operators/owners carry a minimum liability and property damage coverage.
Try: Find out the state of Maryland requirements for uninsured/underinsured motorist at Alexander & Cleaver.

Personal injury protection (PIP)

Personal injury protection (PIP), sometimes called economic loss coverage, is insurance that pays for medical expenses, loss of wages and other necessary payments to any insured individual who is injured during an auto accident. PIP is payable regardless of which driver caused the accident.
Try: Find out more about PIP coverage and get quotes for insurance from a variety of insurance companies from The Unofficial DMV Guide.

Collision insurance

Collision insurance covers losses associated with the policyholder's vehicle during an auto accident. Insurance companies are required to pay only fair market value for any damages incurred.
Try: Learn more about Maryland collision insurance at WSMT Insurance.

Other than collision (OTC) insurance

Other than collision coverage, also known as comprehensive insurance, covers the cost of losses associated with events other than collision, including fire, theft, flood and various other perils.
Try: Peninsula Insurance provides more information about other than collision insurance.

Arbitration clause

An arbitration clause is terminology used in insurance policies that requires all parties to arbitrate disputes in the event the insured and the insurance provider can't agree on who is obligated to cover the loss or the amount of payment for auto claims. This language is unenforceable and can't be used in the state of Maryland.
Try: Learn about Maryland guidelines on arbitration at Miller & Zois.

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