Reader’s Question:

How does Maryland’s no-fault law affect my car insurance?

Travis

Baltimore, MD

The State of Maryland’s no-fault law dictates that all of its motorists must be financially accountable for any untoward accident they may get involved in. This law has been enacted to extend immediate financial assistance to individuals following a traffic accident without having to go to court to collect for damages. This does not mean that a driver forfeits his or her right to sue the other driver. This can still be done if the costs incurred were more than the insured’s coverage limits. Additionally, court litigations can be pursued to collect for damages with non-economic issues such as mental or emotional anguish.

With this no-fault act in effect, a motorist has to obtain Personal Injury Protection (PIP) coverage and minimum liability insurance. The first will cover for the insured’s medical payments and necessary rehabilitation and/or occupational training after an accident. It will also provide financial assistance if there were wages lost because of being unable to attend employment due to sustained serious injuries. It can also give funeral and other death benefits to the insured’s family. The minimum liability insurance kicks in to supplement the other motorist’s coverage if his or her limits were not able to shoulder all the necessary payments for treatment and repair.

The no-fault law affects your premiums by way of being given higher car insurance quotes. This is because all these types of coverage need to be met whereas other states with the traditional tort law, like Montana for example, only require the minimum liability insurance to its motorists.

Tags: auto insurance premium, car insurance law, car insurance quotes, liability insurance