I have never been in an accident so I really don’t know how things work when you have to file for an auto insurance claim. In case I get involved in an accident that wasn’t my fault and caused me injury and I was not able to work, will my insurer here in Maryland pay for my lost wages? Also, who will pay if my car gets wrecked and already beyond repair?

Nova

Germantown, MD

In case you were not able to show up for work because of an injury that was caused by an accident which was not your fault, it is not your auto insurance company in Maryland that is accountable to pay for your lost wages. The at-fault driver’s auto insurance is the one that should pay for it. The only threshold on the total of reasonable lost wages that you could get is the maximum value of the other party’s bodily injury auto liability insurance.

In case you got hit by a motorist whose auto liability insurance could not be able to pay for all of your medical bills and lost wages, you could file a claim under your uninsured motorist coverage for the rest of the expenses. In case you reside in a no-fault state, your Personal Injury Protection (PIP) would have to cover for your lost wages up to the maximum value of its coverage.

If another motorist collides with your vehicle and could not be able to repair it, his/her auto insurance provider would have to pay for the actual cash value (ACV) of your vehicle prior to the accident. The state’s regulations usually let the auto insurance provider to base the ACV of your vehicle which has been declared as total loss on the prices of similar automobiles in your neighborhood. They would also have to pay for the sales tax on the new car that you buy with the insurance money.

I just moved here in Maryland and I need to buy new auto insurance coverage. I came from a state that doesn’t require uninsured/underinsured motorist coverage. How about here in Maryland, are those types of coverage required?

Lawrence

Bethesda, MD

In the State of Maryland, it will be a requirement that you have uninsured/underinsured motorist coverage in your auto insurance policy. In this case, you will have coverage if get into an accident and find out that the other motorist doesn’t have enough or doesn’t have auto insurance at all. A lot of auto insurance professionals suggest this kind of auto insurance coverage, not only it is required in some states, but also it may come in handy in any instance that the other driver has little or no auto insurance. Based on a research, the approximate number of uninsured motorists could reach up to 25% in some states.

Not only uninsured/underinsured motorist coverage could pay for you in case of an accident, but also for your passengers as well as damage to your own property if the crash was caused by the other motorist who is not insured or has little coverage. In case of a hit-and-run, it is considered as uninsured motorist because it is related to uninsured motorist bodily injury (UMBI). In these instances, uninsured/underinsured motorist coverage could cover your damages. Be reminded as well that uninsured and underinsured motorist types of coverage are separate but it can be bought together in some states.