Why You Should Have More Car Insurance Than You Do

These days, it seems that inflation continues to touch every area of our lives, from housing and utilities, to fuel and groceries. With the price tags of medical care and vehicle repairs also soaring, getting into a car accident carries greater financial implications than ever before. When it comes to auto insurance, we often focus on the bare minimum to meet legal requirements, but minimum coverage may no longer suffice in fully compensating accident victims for their damages.

The inadequacy of minimum coverage

In Maryland, the mandated minimum insurance requirements were established in the 1970s and have remained largely unchanged. This means drivers today are only required to have coverage of $30,000 per person for bodily injury, $60,000 per accident, and $15,000 for property damage. As medical costs have skyrocketed since these thresholds were set, they often do not sufficiently address the financial implications of serious injuries.

Emergency transport, hospital stays, treatments, and medications can easily surpass the $30,000 per person limit, leaving accident victims with an overwhelming financial burden. As this discrepancy between coverage minimums and actual costs remains unaddressed, many drivers may need to reevaluate their coverage to ensure they are adequately protected in the event of a serious accident.

The established minimums, severely outdated and outpaced by the current cost of living and medical care, have prompted discussions about potential reforms in insurance regulations, with some arguing for increased minimum coverage requirements. Others propose reforms that incentivize drivers to opt for higher levels of coverage to protect themselves and others on the road.

How much auto insurance should you buy?

How much should you invest in insurance coverage? Unfortunately, it’s not a one-size-fits-all scenario and the answer will hinge on your individual circumstances, all of which should be taken into careful consideration.

Think about your family structure and the other individuals listed on your policy. Are there dependents who rely on you for support? Have any of the other drivers on your policy recently acquired a new vehicle that may affect their insurance needs? Also consider your financial capacity, risk tolerance, and other related factors. Do you have substantial assets that need protection? Would purchasing higher coverage bring peace of mind or create stress and financial strain?

The different types of auto insurance coverage

Selecting the right insurance policy is not always a straightforward process, but understanding each type of insurance can provide helpful insights. Below is a list of the various types of coverage you may want to consider:

• Liability Coverage: This foundational coverage protects you if you’re at fault in an accident, covering the costs of property damage and medical expenses for others involved. You’re required to have liability coverage to drive a car in Maryland.
• Comprehensive Coverage: This covers damage to your vehicle from non-collision incidents such as theft or vandalism. It can be costly, but it does provide extensive protection.
• Collision Coverage: Specifically addressing damages resulting from collisions with other vehicles or objects, this coverage ensures your vehicle repair or replacement costs are covered.
• Uninsured/Underinsured Motorist (UM/UIM) Coverage: This protects you in accidents involving drivers with insufficient or no insurance.
• Personal Injury Protection (PIP): PIP covers medical expenses and lost wages for you and your passengers, regardless of fault.

Using uninsured and underinsured motorist coverage (UM/UIM)

When you are involved in an auto accident that is the fault of another driver, their insurance covers your losses. However, some drivers do not possess sufficient coverage or do not have car insurance at all. In these cases, your own policy can provide a safety net in the form of uninsured or underinsured motorist (UM/UIM) coverage. This coverage protects you if you’re in an accident caused by a driver without auto insurance (or without enough to cover the full extent of your losses) or if you are the victim of a hit-and-run scenario.

UM/UIM insurance can be essential for accident victims to recuperate what they’ve lost. However, in today’s world, even this buffer may not provide enough coverage.

Utilizing personal injury protection (PIP) after a Maryland car accident

Personal Injury Protection (PIP) is another component of auto insurance. PIP is designed to provide immediate financial assistance for medical expenses, lost wages, and related costs, regardless of fault. PIP also covers a broader spectrum of expenses, including a certain amount of income replacement as well as money for funeral expenses, if applicable.

Do you have questions about insurance policies or car accident claims? At Plaxen Adler Muncy, P.A., our experienced personal injury attorneys are here to help. With multiple offices across Maryland, our team is well-equipped to provide the state-specific answers you need. We can help you review your current coverage, navigate the fallout of an accident, and assist in the pursuit of a personal injury claim if necessary. Call our office or complete our contact form today for a free and confidential case review.