Understanding the Different Types of Auto Insurance

When driving in Maryland, you are required to have a minimum amount of auto insurance. This requirement helps ensure financing options for personal injury and property damage. Not only does proper insurance help provide financial after an accident, but it’s also legally required. Failure to meet the minimum insurance threshold could result in high fines and even loss of vehicle registration. But even if you do meet the requirements, it’s often beneficial to ensure additional coverage.

Common Types of Auto Insurance Coverage

There are many different auto insurance policies around, and each will provide coverage for different situations. Making sure you have the right coverage you need is crucial to ensure your financial security after an accident. Make sure you discuss your options with your MAIF insurance provider to get the right coverage for you and your vehicle.

Liability Insurance

Liability insurance doesn’t actually provide you with financial compensation. Instead, it helps safeguard you against out-of-pocket expenses when you are at fault for an accident. If you’re held liable for damage or injury, you could have to pay for medical bills or repair costs yourself. If you have liability insurance, however, your insurance company can help cover some or even all of the costs. Drivers who are at a higher risk of getting into accidents can often benefit from liability insurance to help avoid future financial strain.

Collision Insurance

Collision insurance is specifically designed to help cover the cost of vehicle repair after a collision. A collision could be with another vehicle, but it could also cover accidents such as running into objects on the road. If you are leasing a vehicle, collision insurance is often required on top of the minimum insurance threshold. If you regularly drive in high-traffic conditions, collision insurance could help reduce potential repair costs after an accident.

Comprehensive Insurance

While most insurance policies cover driving accidents, comprehensive insurance will help provide coverage for other incidentals. This includes damage caused by fires, vandalism, theft, animals, and natural disasters. Comprehensive insurance may not be as crucial if you have a secure garage in which you can park your car regularly. But if your vehicle is often exposed to the elements, comprehensive coverage could be beneficial.

Personal Injury Protection

Personal injury protection is crucial to avoid high medical bills. Even if you were the at-fault driver, personal injury protection will cover the cost of bodily injury. This kind of insurance covers both drivers and passengers. If you regularly drive family members or friends around, then personal injury protection may be crucial for your financial well-being after an accident.

Where to Get Insurance Coverage in Maryland

Knowing which kind of insurance coverage you need is only half the battle. Many insurance providers will deny coverage to high-risk drivers or may not offer the kind of coverage you want. At MAIF, we’re dedicated to helping every Maryland driver find the best insurance policy for their needs. Contact a local MAIF provider today to learn more about our policy options.