Maryland PIP Insurance Explained

Short answer: Maryland auto policies include at least $2,500 of personal injury protection (PIP), which pays medical bills, lost wages and household help after a crash, regardless of fault. You can waive PIP for yourself and eligible household members age 16 and older, but the waiver lowers your protection. Maryland is not a no-fault state, so lawsuits aren't limited.

What Maryland requires

The Maryland Insurance Administration's auto rate guide lists the minimum coverages on a Maryland policy:

What PIP pays

Maryland PIP pays, up to your limit:

• medical, hospital and funeral expenses;
• lost income; and
• essential services, such as help with household tasks you can't do because of the injury.

PIP pays regardless of who caused the crash, and it pays quickly. It covers you, household members, passengers in your car and, in many cases, you as a pedestrian struck by a vehicle.

Insurers offer higher PIP limits, and many drivers choose more than $2,500, which can be used up by one emergency room visit.

The PIP waiver

Maryland lets the first named insured waive full PIP for themselves and for household family members age 16 and older. Some details:

• The waiver must be in writing on the state-approved form.
• If you waive PIP, a limited version may still apply to some people, such as passengers who don't have their own PIP.
• The waiver usually lowers your premium modestly.

The Maryland Automobile Insurance Fund (MAIF) uses its own PIP form with similar choices.

Think carefully before waiving. Health insurance may cover medical bills, but it doesn't replace lost wages or pay for household help.

Not a no-fault state

Unlike states such as New York or Michigan, Maryland doesn't limit your right to sue the at-fault driver. PIP is simply first-party coverage that pays early. You can collect PIP and still bring a claim against the at-fault driver. Ask your insurer or an attorney how the two interact in your situation.

Contributory negligence makes PIP more valuable

Maryland follows contributory negligence. If you're even slightly at fault for a crash, you may be barred from recovering anything from the other driver. PIP pays regardless of fault, so it can be one of the few sources of payment for your injuries when fault is disputed.

Enhanced underinsured motorist coverage

Maryland's UM coverage normally matches your liability limits. For new policies issued on or after July 1, 2024, enhanced underinsured motorist (EUIM) coverage is the default unless the first named insured opts out, according to the Maryland Insurance Administration. EUIM pays on top of the at-fault driver's liability coverage instead of being reduced by it.

Common scenarios

You're rear-ended and miss two weeks of work. PIP can pay a portion of lost income, regardless of fault.

You waived PIP and are injured as a passenger in a friend's car. Your protection may depend on the friend's PIP and your health insurance.

The other driver says you were partly at fault. Under contributory negligence, you might recover nothing from them. Your PIP still pays.

Key terms

• PIP: first-party coverage for medical bills, lost wages and essential services.
• PIP waiver: a written election to give up full PIP.
• Contributory negligence: a rule that can bar recovery if you share any fault.
• EUIM: underinsured coverage that adds on to the at-fault driver's limits.

Questions to ask your broker

• Have I waived PIP, and for whom?
• What would higher PIP limits cost?
• Do I have EUIM?
• Are my liability limits high enough?

Bottom line

Maryland's $2,500 PIP is modest, but in a contributory negligence state it can be crucial. Keep PIP, consider a higher limit and check whether you have EUIM.

Contact Alishahi Insurance or call (877) 711-4545. See insurance in Maryland, auto insurance and our car insurance minimums by state table.

Frequently asked questions

Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.