Maryland motorists will be experiencing a slight detour when renewing their car insurance next year. The Maryland Legislature recently passed a bill raising the minimum levels of car insurance liability coverage required for Maryland motorists.
Maryland House Bill 825, introduced in early February, recently cleared both houses of the state assembly: 97-36 in the House of Delegates and 27-20 in the Senate. The new bill requires Maryland motorists to carry minimum liability coverage of $30,000 per person/$60,000 per accident compared to the current requirement of $20,000/$40,000.
This law will affect all motorists purchasing or renewing their car insurance policies after Jan. 1, 2011, and marks the first adjustment to these requirements since the law was enacted in 1972. Maryland is joining a majority (66 percent) of states that have minimum limits set higher than $20,000/$40,000.
Many proponents consider the passing of this bill to be long overdue and a meaningful step in protecting Maryland motorists.
The Maryland Association for Justice (MAJ), an advocacy organization and major force behind the success of the bill, believes that this new law will provide protection to Maryland residents injured in accidents. MAJ’s Legislative Chair Robert Zurbin, Esq. anticipates that the passage of this bill will produce additional funds that can be utilized for uncompensated care by the hospitals.
Supporters also expect that the bill will help curb the number of serious injury and wrongful death cases in Maryland when insurance coverage is inadequate. The hope is that the bill will provide adequate coverage for all motorists involved, cutting down on the number of lawsuits attempting to obtain additional funds to cover medical expenses.
The Maryland Hospital Association estimates that hospitals spend more than $12 million annually to provide uncompensated care for underinsured, injured motorists. The organization believes that the higher limits will reduce the amount of essentially free care hospitals are forced to provide.
However, not everyone is convinced of the new bill’s benefits.
Opponents believe it will adversely affect low-income drivers and those who are currently insured through the Maryland Automobile Insurance Fund or MAIF, the state-sanctioned insurance plan.
According to the Maryland Insurance Administration, the bill will greatly impact about 240,000 motorists who currently have only the minimum required liability coverage. The greatest concern is that an increase in insurance premiums could lead individuals to drop their coverage altogether. The organization believes this could ultimately lead to more uninsured motorists on Maryland roads or could prevent people from driving, which in turn might make it more difficult to secure employment.
Maryland’s Governor Martin O’Malley signed the bill into law this week.
