Media post: When Minimum Liability Insurance Isn’t Enough

If you drive every day in Maryland, you are inevitably at risk of being in an accident. This does not mean the accident will automatically be your fault. There are many road hazards, including drunk and distracted drivers. 

Sometimes, the biggest consequence of an accident is that you do not have enough financial protection to cover the expenses. 

This is why having liability insurance is so important. You must meet the legal minimum for liability insurance to register your car. The problem is that you may be tempted to select the minimum coverage only. 

While it is legal to have only $30,000 liability insurance, it can leave you exposed to significant financial losses if an accident results in severe injury or property damage. 

Maryland’s Liability Insurance Requirements 

Maryland law requires all drivers to carry liability insurance that meets certain thresholds. In 2025, the format for these thresholds is 30/60/15: 

– $30,000 (30) for bodily injury per person. This limit refers to the maximum amount your insurance company will pay for injuries to another person. This amount will be paid if you are found to be to blame for the accident.

– $60,000 (60) for bodily injury per accident. Your insurer will cover this maximum if there are injuries in a single accident and more than one person is injured.

– $15,000 (15) for property damage per accident. If you cause an accident that damages another person’s property, your insurer will pay a maximum of $15,000 to cover the repair or replacement costs.

If you think these figures are high, they are not. They are the bare minimum you need to comply with state regulations. If you compare them to car repair, replacement, or medical care costs, you’ll soon see how inadequate they are. 

Limitations of Minimum Coverage

In Maryland, liability insurance only covers the damage you cause to others. It does not pay for damage to your car or medical care after an accident. So, if you cause an accident, your insurer will pay a settlement to cover the victim’s damages. 

If the accident causes severe injuries to the victim, their expenses will far exceed the $30,000 limit. In this case, you will become personally responsible for covering the difference. 

The same applies when there are multiple injuries. The $60,000 per accident limit will be very quickly exhausted. This means you can be sued by multiple victims, which could cause you to become bankrupt. 

Not all accidents are major or cause severe injuries. But, even a so-called minor accident can quickly escalate cost-wise. The victim may discover only later that they suffered severe internal injuries, or a repair estimate may reveal extensive damage to their car. 

If the total cost amounts to hundreds or thousands of dollars, you will quickly experience the gap between your policy limits and actual damages. If you have to pay out of pocket for the unpaid expenses, your savings or income will be severely impacted. 

Rising Costs in 2025

Maryland is not exempt from rising costs, just like the rest of the country. In fact, the cost of medical treatment, in particular, has skyrocketed over the past 10 years. 

Things like emergency care and rehabilitation services continue to get more expensive. Even the most routine fix can become incredibly costly for car repair. This is largely because of the pricey technology included in modern cars. 

So, after an accident, even a moderate injury can now cost more than $20,000. When there are multiple injuries, imagine where that price point will end. 

Similarly, if you crash into a new model car with many high-tech features, your insurance minimums will not cover all the damages. 

Personal Financial Consequences

As explained above, the gap between your policy limits and actual damages will become your responsibility to cover. In legal terms, you will be referred to as being underinsured. 

If the victim decides to sue you, you may have a judgment against you. The judgment will aim to get you to pay for the expenses your insurance does not cover. A court may order a garnishment on your wages or liens on your property under certain circumstances. 

This can be avoided by purchasing adequate insurance instead of the absolute minimum. You will pay more for higher coverage, but this won’t compare to the amount of money you would need to pay if your insurance policy bottoms out. 

Consider Underinsured Motorist Coverage

You can increase your liability insurance limits to protect yourself financially. You should also consider getting underinsured motorist coverage (UIM). A UIM policy will protect you if you are the victim of an accident where the driver has liability insurance limits that are too low. 

If you want extra protection, consider investing in enhanced underinsured motorist coverage (EUIM). This policy allows you to build your owner coverage with the at-fault driver’s limits. 

For instance, you may have $100,000 EUIM insurance, and the other driver has $30,000 liability insurance. Your enhanced coverage will allow you to recover the entire $100,000 from your policy. Plus, you will be eligible for compensation from the other driver’s insurance. 

This type of coverage is extremely important for accidents where injuries and damages far exceed insurance minimums. 

Practical Steps to Protect Yourself

Protect yourself from financial risk with these steps:

– Review your current insurance policy to compare it with accident costs. 

– Consider increasing your minimum limits for added protection.

– Add UIM or EIUM coverage if your policy does not include it.

– Find the best rates for your additional insurance coverage by comparing quotes.

– Re-assess your coverage requirements every year, especially if you buy a new car or get a salary increase. 

Relying on Minimum Insurance Limits Is Risky

If you have never been involved in an accident, it is easy to get complacent. You may believe that you will never cause an accident. You may get too comfortable and believe no one will ever crash into you. 

Unfortunately, this is not the reality of life in Maryland. An accident can happen to anyone anytime when they least expect it. If you only have minimum insurance coverage, it can mean you become financially ruined (if you caused the accident). 

Err on the side of caution and get more comprehensive insurance coverage. This will allow you to drive with confidence and peace of mind.