Auto Insurance Maryland

Depending on the type of policy and the amount of coverage an owner purchases, auto insurance can cover a wide range of situations and expenses. In addition to out-of-pocket medical bills for an injured party, a policy can cover things like vehicle damage resulting from an accident, long-term medical problems associated with an accident, loss of the vehicle through a variety of mishaps like floods, fires, theft, earthquakes, falling trees, severe storms, and much more.

Two of the most central parts of any auto policy pertain to the coverage for physical injuries to parties in an accident and the cost to repair or replace vehicles that are involved in an accident. An insurance policy can also cover vehicle damage that results from a single car or truck and a stationary object like a pole or wall. Additionally, policies can be written so that a not-at-fault driver is covered even when the at-fault driver has no insurance or not enough insurance to pay for damages.

There are many reasons to have an insurance policy in place before driving a single mile on the open road. Even a bare-bones, liability-only policy will help you meet state legal requirements for coverage. Other polices that offer more than simple liability protection can help replace or repair a car after a serious accident, cover medical costs associated with an accident, replace a car that's stolen, or help cover expenses that result from non-accident damage to a car, as in the case of a flood or destructive storm.

Automobiles are often described as potentially lethal objects that are able to travel at high speeds on the open road. The damage from a collision can be devastating. In addition to loss of life, injuries can be disabling and cause significant distress for victims. Children and adults can suffer life-threatening injuries and even find themselves confined to a hospital for months after a serious accident.

A collision can destroy a vehicle completely, or result in a huge repair expense. When a vehicle is stolen or nearly destroyed in a flood or tornado, insurance is sometimes the only protection an owner has. A policy cannot always return life to normal or ease the pain of a crash, but it can cover expenses of medical care and help owners get their lives back on track by paying for repair costs to a damaged vehicle.

Legally speaking, a tort is simply an injury to one party that is caused by another party. In the world of vehicle insurance, there are basically two kinds of coverage: full tort and limited tort. For owners who have limited tort, there is no ability of the injured party to pursue any compensation other than out-of-pocket costs for damages, unless the injuries can be clearly categorized as "serious."

The law narrowly defines "serious" injuries. Only those injuries that result in death, permanent disfigurement, or significant impairment of bodily function are considered serious. The problem arises because the laws are written in such a way that many injuries that are indeed serious but not defined as such within the letter of the law.

Full-tort coverage costs more because allows injured parties to pursue an at-fault driver for much more than out-of-pocket medical expenses. Long-term suffering like back pain, psychological problems that show up years later, and a whole host of accident-related problems are within the realm of full-tort coverage. Drivers who are on the road a lot, have families, or just want the peace of mind often view the higher premium a necessary expense of complete protection.

For car owners who value financial protection, limited tort is not recommended. The cost of the coverage is usually far outweighed by the peace of mind that comes with full tort protection. When a driver is in an accident and is not the at-fault party, there can often be medical costs beyond the so-called "out-of-pocket" charges. Long-term pain and suffering can cause people serious problems. It's common for injuries from a car crash to lead to many life-long maladies like emotional distress, back problems, headaches, and more.

While a limited tort policy will allow the not-at-fault driver to recoup immediate, out-of-pocket medical expenses, there is no provision for pain and suffering that results from "non-serious" injuries. The problem, legally, is that it's very hard to define the word "serious." Many legal cases have ended with injured parties being unable to pursue the at-fault party because the insurance policy was limited tort.

It pays to speak with a knowledgeable insurance professional and decide exactly what type of coverage you desire. The question regarding the choice of full tort versus limited tort is complex and requires more than a little research on the part of car owners.

Sometimes, comprehensive coverage is referred to as "other than collision" vehicle coverage. That's an apt name because these policies take care of expenses related to events other than accidents. Anything that is outside your control, generally speaking, comes under the purview of comprehensive coverage.

In most cases, when someone makes a claim on their comprehensive policy, it's for things like fire, acts of nature, severe weather like hailstorms and tornadoes, vandalism, theft, glass damage, and more. Drivers often forget about all the non-accident causes of vehicle damage when they take out insurance policies. Once they look at the list of possible mishaps, they quickly realize just how important comprehensive coverage can be.

In many parts of the U.S., it's quite common for drivers to have collisions with animals, encounter floods, or suffer damage from falling trees. These are just a few of the many situations when comprehensive vehicle coverage can protect a person's financial interest.

By law, drivers do not have to have collision coverage. That doesn't mean it's a good idea to go without it. But from a legal perspective, the answer is no, you aren't required to have collision insurance as long as you own the vehicle. For most car owners, whose vehicles are financed by a bank or other type of lender, collision coverage is mandatory. If you choose not to add it to your policy, your lender has the right to take out a policy and add whatever its cost is to your monthly car payment. This is an unwise path to take because lenders will not shop around for the least expensive policies on your behalf.

If you are financing the vehicle your drive, be sure to add collision coverage to your basic policy options. Don't assume your lender does not know that amount or kind of insurance you have. As the legal owner of the vehicle, until you pay it off, the lender receives data directly from the insurer concerning the exact levels of coverage you have on the vehicle.

If you own your vehicle, do the math and figure out how much collision coverage you need. This involves calculating how much it would cost to repair your car after an accident. Know that the actual value of your vehicle is based on mileage and depreciation and then obtain at least that amount of collision coverage.

Uninsured and underinsured coverage can pay for medical and vehicle expenses associated with an accident in which the at-fault party has either not enough or no liability insurance. As their names imply, these policies are helpful for drivers who are in an accident for which they are not at fault and the other driver has no insurance or has liability coverage with limits that aren't high enough to pay for damages incurred.

Maryland vehicle owners are required by state law to have uninsured/underinsured liability coverage for bodily injuries in the amount of $30,000 per injured party. There is a per-accident cap on the coverage in the amount of $60,000. Vehicle owners can buy more than that, but are not required by law to do so.

The main advantage of uninsured/underinsured policies is unique protection for a small additional fee to most insurance premiums. Considering that states require you to have liability coverage for the benefit of other drivers and passengers, it only makes sense that you would want to have coverage to protect your own financial interest in the event of a collision with a motorist who has no insurance or not enough insurance.