The Maryland Insurance Administration notes that the minimum amount of uninsured/underinsured coverage required by Maryland law is:

• $20,000 for bodily injury per person;
• $40,000 bodily injury per accident; and
• $15,000 property damage.

The minimum amount of liability coverage required by Maryland Law is:

• $20,000 for bodily injury per person
• $40,000 bodily injury per accident; and
• $15,000 property damage.

Maryland law requires consumers to purchase at least $2,500 in Personal Injury Protection (PIP) coverage. You may be able to waive PIP coverage for certain individuals resulting in a reduction in your premium.

Because PIP coverage may duplicate an individual’s health care coverage, some consumers choose to waive PIP if they feel they have adequate health care coverage and/or can afford to pay for medical treatment. You should check your health care policy and consult your insurance agent about this coverage. Although waiving PIP results in a lower premium, you should keep in mind that PIP also pays lost wages and your household members’ medical expenses, which are not covered under health care policies.

While MD state law establishes the minimum level of Liability coverage, consumers who can afford higher premiums may choose to purchase more coverage. Higher limits of coverage provide more protection against repair expenses, medical expenses and legal judgments which might be higher than the minimum coverages required by Maryland law.

So above is listed the Liability, PIP and Underinsured/Uninsured Motorist coverages that the state of Maryland require. If you are financing a vehicle your lien holder may require you to carry certain auto insurance coverages, usually it is Physical Damage coverages of Collision and Comprehensive that they require on the car.

Lien holders do not usually require you to raise your Liability or UM/UIM limits but do require that beyond the state's minimum auto insurance limits that you also carry Physical Damage coverages since they protect their asset, the car.

Physical Damage coverage, also referred to as com and collision coverage, is the most commonly required coverage by lien holders as it protects you from expenses related to damage or loss of the vehicle (e.g. accidents that you cause, theft or vandalism), which they technically own until you pay it off.

Although Maryland law does not require you to purchase physical damage coverage, often banks and other financial institutions that lend you money to purchase your vehicle or lease you a vehicle, will require that you purchase both collision and comprehensive coverage to protect their interests in the vehicle.

Lien holders’ requirements for auto insurance differ so if you either have a current lien holder or if you are going to finance a car than you will need to read through your paperwork to see what car insurance coverages they require you obtain and maintain on the vehicle. Also remember they will also normally be required to be listed on your policy as an additional insured/loss payee as the lien holder.

Get low cost car insurance quotes for MD here with us.