Insurance Maryland: A Guide to Auto & Home Coverage
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If you're wondering if you have appropriate home and auto insurance coverage, you're not alone. This is especially true in Maryland, a coastal state that experiences a wide range of extreme weather, which adds some extra challenges to purchasing insurance.
Below, we explore the ins and outs of Maryland insurance for your home and auto so you can make an informed buying decision.
Introduction to Maryland Insurance Laws
Maryland insurance laws protect homeowners and drivers and make sure that insurance providers operate fairly. These laws and regulations require all insurance companies and agents doing business in the state to register with and receive a license from the Maryland Insurance Administration. This licensing ensures that all insurers and agents understand and abide by state laws.
However, Maryland state laws also regulate consumers. For example, the state requires a minimum amount of insurance coverage when you register a vehicle in Maryland.
Mandatory Auto Insurance in Maryland
Maryland car insurance requirements state that all drivers must carry a minimum amount of auto insurance. This minimum insurance protects you from being financially liable for any damages or injuries you cause in an accident and protects others by covering their medical and repair bills.
The minimum required liability car insurance in Maryland is:
- $15,000 in property damage liability per accident
- $30,000 in bodily injury liability for one person
- $60,000 in total bodily injury liability when multiple people are injured
Maryland law also requires you to carry uninsured or underinsured insurance coverage. This covers you if you’re in an accident with someone with inadequate or no coverage. It also covers you in a hit-and-run accident.
- $15,000 in property damage coverage per accident
- $30,000 in bodily injury coverage for one person per accident
- $60,000 in total bodily injury coverage for two or more people per accident
Understanding Personal Injury Protection (PIP)
PIP is an optional coverage in Maryland that all insurers must at least offer to their customers. PIP covers you and other named people on your policy for things the basic liability coverage does not, such as:
- Medical bills for injuries sustained in an accident
- Rehabilitation expenses
- Lost wages
- Funeral expenses
An insurer must automatically apply at least $2,500 in coverage when offering PIP. You have four options with PIP:
- Do nothing and accept the automatic coverage.
- Opt for higher PIP coverage, if available.
- Exclude yourself but not others in the vehicle from PIP coverage.
- Reject PIP by signing a waiver.
Review the insurance requirements of your state:
The Importance of Home Insurance in Maryland
Homeowners insurance in Maryland typically covers damage to the home’s structure, liability for injuries on the property, medical payments for those injured on your property, and additional living expenses during your home’s repair.
Homeowners insurance policies may also offer limited coverage for personal property, other unattached structures on the property, debris removal, tree, shrubbery and plant damage, and mold.
Maryland insurance companies typically offer two types of home insurance: HO-2 and HO-3. Most policies will be an HO-3, but let’s review the differences:
- HO-2: This is a named-peril policy, meaning the insurance company specifically names the perils it will cover, such as fire, lightning, wind damage, hail damage, theft, and more.
- HO-3: This is an all-risks policy that covers all perils except those it explicitly excludes, such as flooding, earthquakes, neglect, war damage, and more.
Maryland is a coastal state prone to severe flooding in certain areas. Most homeowners insurance policies don’t cover flooding, so you may want to consider purchasing flood insurance to ensure you’re covered.
Comparing Car Insurance Policies in Maryland
When shopping for car insurance, comparing your options helps you find cheap car insurance in Maryland that still meets your coverage needs and state requirements.
Factors that influence car insurance premiums in Maryland include:
- Your driving record
- The type of car you drive
- Your location and zip code
- Your credit history
Finding Affordable Home Insurance in Flood Zones
If you live in a flood zone, finding Maryland flood insurance helps protect your financial well-being if flood waters damage your home. However, you want to shop around to make sure you get the cheapest premiums for the coverage you need.
Some tips to help you find cheap insurance in Maryland for a home in a flood zone are:
- Shop around and compare quotes from multiple insurers.
- Increase your deductible to lower your premiums, but make sure the deductible is still affordable.
- Take advantage of any applicable discounts, such as bundling with auto insurance.
- Evaluate the need for additional coverage based on your property’s flood risk.
Maryland-Specific Insurance Regulations
Like many states, Maryland has specific regulations controlling the home and auto insurance industry and preventing discriminatory practices and other unfair actions.
Maryland’s Insurance Administration creates and enforces these regulations. Periodically reviewing the Insurance Administration’s website can help you stay current with any changes.
Get the Best Car Insurance Today
Securing the best car insurance in Maryland means getting the coverage you need from a reputable company at the lowest possible premium. EverQuote's online auto insurance comparison tool lets you compare multiple auto insurance quotes in one place and choose the best option for your needs.