Maryland’s minimum auto liability insurance limits are not enough. Sure, you’re a responsible driver. But is the Maryland minimum, bare bones auto insurance coverage really sufficient to cover your risks? I suspect not. Yes, every state imposes a minimum on liability insurance coverage. This coverage not only protects you against having creditors forcibly seize your a-sets and […]
Yes, every state imposes a minimum on liability insurance coverage. This coverage not only protects you against having creditors forcibly seize your a-sets and land you in bankruptcy court; it also helps protect others around you, by ensuring that no matter what their medical issue or damages, there is enough liquidity on the table to make sure they are economically protected.
But state minimums aren’t designed for most individuals, especially the affluent, and do not provide you with the real protection you need. State legislatures must set liability minimums low enough so that car insurance coverage is affordable even for poor families – so at least they’ll get something rather than drive completely uninsured. State minimums are not designed to provide really adequate protection for drivers who have a-sets or make a decent income and are those who are targets for legal action.
Remember, even if you lend your car to someone else for the weekend – if he or she crashes it, and causes damage, it’s you, as the car owner, who is ultimately responsible. Owners are first in line, ahead of drivers, when plaintiffs’ lawyers start looking to collect on damages not covered by auto insurance.
Judgments for damages in auto accidents are very frequently $50,000 and over and can range into the millions. We looked at actual judgments obtained by just one small law firm, and found instances like these:
The Maryland state-mandated minimum of $30,000 per person/ $60,000 per accident/ $15,000 property damage per accident might cover most fenderbenders, but it is woefully inadequate for the real risk. If you are sued, and the plaintiff wins, you will be held responsible for the whole judgment over the amount of your coverage.
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