As the cost of living and inflation continue to rise every year and especially every decade, many states have begun kicking around the idea of raising mandatory car insurance coverage levels. Currently, there are certain states that have had the same limits in place for decades, while others have protection levels that would not cover very much following a serious traffic collision. Fortunately, states have started to move on the need for more coverage and MD is one of the latest to implement a law requiring more extensive liability policies.
Beginning January 1, 2011, the Maryland auto insurance laws require that all policies written or renewed after that date must consist of liability limits of $30,000 for bodily injury to one person and $60,000 for bodily injury to two or more people in one accident. The Uninsured Motorist coverage requirement must also consist of these same limits for bodily injury to the policyholder and anyone considered an insured. This is an increase from the previous required limits of $20,000 and $40,000. However, the property damage limit of $15,000 for both liability and uninsured motorist has remained the same, but can be increased by the consumer should they feel the need for more protection.
Generally, consumers tend to frown upon the fact that they are in need of purchasing more extensive coverage than previously required, and this is basically due to the fact that with higher limits comes an increased premium and more money out of the motorists’ pocket. While this may be the case, with such a small increase in required coverage, the premium should be affected by very little monetarily and can be extremely beneficial in the event of an accident. In fact, it is often suggested that vehicle owners actually purchase protection above what is mandated and obtain the highest limits that can be afforded.
Many motorists look to obtain the most affordable policy available when getting insured and this would most likely mean purchasing the absolute minimum coverage allowed by law. The fact of the matter is that even with an increase in requirements, the new limits set by the state still may not be enough to cover expenses that may be incurred following a traffic accident. With the high cost of medical care, the chances are that $30,000 may not cover injuries, pain and suffering and lost wages that may be suffered by the injured party after a serious collision; this would leave the policyholder liable for paying any additional compensation that may be due as a result. It may be wiser to purchase a higher limit to avoid such a situation. Residents may want to refer to the Maryland Consumer Guide To Auto Insurance for assistance when choosing the right coverage and obtain tips to reduce premiums.
Source: http://www.onlineautoinsurance.com/maryland/
