In Maryland, drivers are required to carry bodily injury liability insurance and property damage insurance. The purpose of having these two forms of insurance in place is to protect the driver from any damages that may occur as the result of an accident that the insured driver causes. Maryland car insurance companies take a number of factors into consideration when determining the rates that drivers have to pay. Some of these factors include the type of vehicle being insured, the driver’s age, and the person’s driving record.
The minimum liability coverage for Maryland drivers is 20/40/15. This means the minimum coverage the driver must carry for each person injured in an accident is $20,000. With personal injury, a Maryland driver must also carry $40,000 in coverage for any injuries the insured driver causes in an accident. Maryland drivers also must carry $15,000 to cover the cost of for property damaged in an accident that was the insured driver’s fault.
Maryland drivers may also choose to carry additional insurance coverage, though this is optional. Some of the optional coverage a Maryland driver may choose to carry includes comprehensive insurance, coverage for medical payments, collision insurance, and additional insurance to cover the underinsured or the uninsured.
Bodily Injury Liability, which known as BI for short, must be in place in the amount of $40,000 per accident and $20,000 per person. This type of liability insurance is used to cover the driver when he or she causes an accident. Bodily Injury Liability covers many things, including accidental death or injury of the other driver, accidental injury or death of any passengers involved with the accident, and accidental injury or death o any pedestrians involved in the accident.
Maryland law requires that its drivers carry $15,000 in Property Damage insurance, which is referred to as simply PD for short. With Property Damage insurance, the insured driver is covered if he or she causes an accident that results in damage to another person’s property. With Property Damage insurance, the cost of replacing or repairing the other driver’s car is covered, as is the cost of replacing or repairing any other property that is damaged.
In order to register a vehicle in Maryland, drivers must produce poof of insurance. Drivers can demonstrate proof of insurance with a temporary insurance card issued by the insurer. Maryland drivers may also show proof of insurance with a premium receipt or an insurance binder that was issued by the insurance agent, or with a current declarations page of liability insurance policy.
Maryland drivers can also show proof of insurance by presenting the actual insurance policy that was issued for the vehicle. Or, a certificate of liability insurance policy that was issued by an authorize agent or by the insurer. If a driver in Maryland has purchased a vehicle within the last 60 days, he or she can also demonstrate coverage by presenting proof that the replaced vehicle had insurance coverage. Those Maryland drivers that choose to rent a vehicle must demonstrate coverage by showing the rental agreement containing proof of insurance.