Since car insurance is regulated on a state-by-state basis, there are two basic types of auto insurance systems: “no-fault” and “at fault” (this is normally referred to as tort liability auto insurance). In a no-fault state, drivers are responsible for damages to their own vehicles and sometimes their own medical bills in the case of a collision with another driver. An easy way to remember what no-fault means is that regardless of who caused the incident, everyone is required to file a claim with their own insurance. In no-fault accident states, drivers are required to have personal injury protection coverage as part of their auto insurance policy. The rules surrounding auto accident lawsuits in no-fault auto states are very strict. These rules are known as threshold conditions and relate to the severity of the injury sustained in the auto accident.
Maryland is an at fault or tort law, otherwise know as an at-fault state for car accidents. That means that drivers are allowed to sue another driver for compensation after a crash regardless of how minor the victim's injuries are. Additionally, Maryland insurance law requires insurance companies to offer their insureds the option to include no-fault coverage in order to qualify for certain insurance benefits that are not based on fault, which gives drivers additional options to recover damages after a collision.
Therefore, Personal Injury Protection (PIP) coverage is must be offered by insurance companies in Maryland. Maryland drivers can include as part of their insurance policy. PIP is a no-fault benefit. Using PIP, drivers can be reimbursed for their medical expenses and a percentage of their lost wages after an accident. The main advantage of PIP is that drivers don’t have to supply evidence of fault in order to be compensated. That means PIP benefits are paid out quickly.
As a result, drivers filing a personal injury claim must supply compelling evidence that another party is at fault before compensation can be awarded. With PIP, you can rest assured that financial benefits for some of your accident-related expenses can come immediately while other claims are pending. These benefits are time sensitive, however. In Maryland, a PIP application with your insurance company must be completed within one year of the collision.
Contact us if you or a loved one has been injured in an automobile accident for a prompt and professional free legal consultation.