According to the Maryland Insurance Department the minimum coverages and coverage limits required by MD law are:

Liability coverages of $20,000 for bodily injury per person or $40,000 per accident, and $15,000 for property damage (20/40/15);

Personal Injury Protection (PIP) coverage of $2,500; and

Uninsured Motorist (UM) coverages of $20,000 bodily injury per person or $40,000 per accident, and $15,000 for property damage (20/40/15).

Comprehensive and Collision coverages are optional coverages however if you have a lien holder on your vehicle they may require these coverages be placed on the car.

PIP may be limited, which will result in a lower premium. Full PIP covers you and members of your family residing with you who may be injured in a motor vehicle accident, anyone else injured while in your vehicle, and pedestrians injured by your vehicle. Limited PIP eliminates coverage for you, your family members 16 years of age or older that reside with you, and any listed drivers on the policy.

Anyone else injured while in your vehicle and pedestrians injured by your vehicle will continue to be covered by limited personal injury protection if you choose this coverage over full PIP. Limited PIP premiums are typically 40 percent of Full PIP premiums. You must sign a waiver form to obtain Limited PIP.

Just as a general description of the other mandatory coverages, liability insurance of both bodily injury and property damage is required however it does not protect you or your car directly. Bodily injury (BI) liability insurance covers you if you cause an accident injuring other people. It protects you against their claims up to the stated amounts for medical expenses, lost wages, pain and suffering and other losses. It does not pay for bodily injury you may sustain.

Property damage (PD) liability coverage pays for any damage to the property of others up to the stated amount provided by the policy (i.e., a crushed fender, broken glass, or a damaged wall or fence). Your insurance will pay for this damage if you were driving your auto or if it was being driven by another person with your consent. Property damage liability also pays if you damage government property like a light pole or signpost, up to the limit you choose.

Uninsured Motorist (UM) protects you if a hit-and-run driver or someone without insurance causes damage to your property or injures you or your passenger(s).

If you add optional coverages such as collision and comprehensive your auto insurance will protect your investment (your car) and guarantees you a way of coping with the expense of accidents, vandalism or theft. It also secures your financial responsibility to the financial institution that lent you money to buy your vehicle.

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