Maryland is a mid-Atlantic state in the United States, known for its diverse geography ranging from beaches on the Atlantic coast to mountains in the west. Its largest city is Baltimore, while the capital is Annapolis. The state has a rich history, playing a key role in the American Revolution and hosting the U.S. Naval Academy.
When individuals in the state of Maryland are involved in car accidents, it is necessary to understand how the insurance system works when it comes to compensating for the damages. A major aspect of this process goes by the name ‘no-fault insurance.’
What is No-Fault Insurance in Maryland?
One might wonder, is Maryland a no fault state? The answer is yes. No-fault insurance is a special type of insurance that works a little differently than most would expect.
If two motorists collide in a car accident, normally, they would argue about who caused the accident. The person who caused the accident usually pays for the damages. But with ‘no-fault insurance,’ it doesn’t matter who was at fault. Both motorists’ insurance covers them for their own damages and losses.
In Maryland, this works so that after an accident, each driver’s own automobile insurance will pay for medical bills and some other costs, up to a certain limit.
Why Does Maryland Have No-Fault Insurance?
Maryland, like most states, opted to adopt a no-fault insurance framework because it can help make car accident cases simpler. In the absence of no-fault insurance, after an accident, one might have to spend years or months contesting in court who caused the crash. This is expensive, stressful, and time-consuming.
The no-fault principle allows people to get medical care and pay for car repairs sooner. It also reduces lawsuits. Instead of suing each other, drivers can simply get treated and forget about it.
How Does No-Fault Insurance Work in Maryland?
In Maryland, every driver is required to have Personal Injury Protection (PIP) as part of their car insurance. PIP is the no-fault insurance coverage that pays for things like:
- Medical bills
- Income lost
- Other services you might need because of the accident.
It’s important to know that PIP only covers your own expenses. If the other driver was at fault for the crash and they have insurance, their insurance will cover your property damage, like the cost to fix your car. But when it comes to your own injuries, your insurance will pay first.
What Does No-Fault Insurance Not Cover?
Even though no-fault insurance is truly a good thing, it won’t cover all costs. For example:
- Property damages
- Severe injuries
What if You Want to Sue?
Even if Maryland is a no-fault state, there are some situations where you can still sue the other party. For example, serious injuries and expensive medical bills. But remember, suing is only done if the accident was very severe or if PIP is not enough to cover your needs.
No-Fault Insurance Advantages and Disadvantages
As with everything else, there are advantages and disadvantages of no-fault insurance.
Advantages
1. Immediate access to cash: You can get compensation for medical bills and lost wages immediately without waiting for the lawsuit.
2. No litigation: Since drivers do not have to prove fault for the accident, there is no need to take the case to court.
3. Less stress: You will not need to argue about who caused the accident.
Disadvantages
1. Limited coverage: No-fault insurance does not cover everything, like automobile repairs or serious injuries.
2. Can be expensive: Adding PIP coverage to your insurance may raise the cost of your annual premium.
3. Not always fair: Sometimes, despite another party having caused the accident, you end up paying your own medical bills upfront, which may not always be fair.
Final Thoughts
Maryland no-fault insurance is designed to make life easier after a car accident.
- It helps guarantee people get medical attention and lost income quickly
- It reduces the amount of litigation
- Less stressful
- However, it doesn’t cover property damages and severe injuries
