Getting the Right Auto Insurance in Maryland

Unfortunately, buying a new car in Maryland doesn't end in a simple 'happily ever after' as you drive off into the sunset in your new vehicle. There's one other key item that has to be taken care of before you drive your car off the lot, and that is auto insurance.

Maryland's Auto Insurance Laws

Whereas most states in the Union simply require that vehicle drivers keep an active liability insurance policy with certain minimum levels of coverage, Maryland requires that and more protection for its drivers as well. In Maryland, drivers are responsible for maintaining:

• Liability Insurance - $20,000 bodily injury per person: This part of the liability insurance policy provides for the medical expenses for one person in another vehicle (or pedestrian) that you are involved in an accident with.
• Liability Insurance - $40,000 bodily injury per accident: If there are multiple people in a vehicle who are injured, this coverage provides a maximum amount for all of the injuries that are sustained as a result of the accident. Needless to say, it isn't very much, and not carrying more than this minimum requirement could easily land you on the wrong side of a lawsuit to pay for the hospital bills some other way.
• Liability Insurance - $15,000 property damage per accident: This part of the liability insurance coverage provides for repairs to a damaged vehicle or other property that you are involved in an accident with. Again, this minimum does not provide much protection for you if you were involved in an accident with say, a Mercedes or one of those fancy limos always coming and going around the D.C. area.
• Uninsured Motorist Coverage: At the same levels of protection for your liability insurance. Uninsured motorist coverage provides protection for your injuries and damage to your vehicle if you are involved in an accident with someone else who is in violation of the law and not carrying liability insurance.
• Personal Injury Protection - $2,500: Personal Injury Protection, or (PIP), provides you with an income if you are involved in an accident that leaves you unable to work.

Shop Around

Even if you already have auto insurance, when you are shopping for a new car you should give other insurance companies a chance at earning your business for less than what you are paying to your current insurance provider. Ask about various discount offers such as a multiple car discount if you will be keeping a current vehicle in addition to your new one. Insurance companies also offer discounts for good students, safe drivers, or multi-policy insurance, for those who insure their home along with their car.

Once you've shopped around for insurance plans, you will be better prepared for the additional expense that your new car is going to bring you. If you have researched your car thoroughly, it may be possible to get your insurance started before you even get to the dealership by providing them with the model, type and year of the vehicle you intend to purchase. For more information regarding auto loans, read through our frequently asked questions.