Those who understand car accident and auto insurance laws tend to ask whether Maryland is a no-fault state when in a car accident. Understanding this distinction is critical because it affects handling accident claims, including who pays for medical bills, property damage, and other losses. To be clear, Maryland is an at-fault state. This means the driver responsible for causing the accident is liable for covering damages sustained by the victim. But Maryland’s system can be complex. It follows many common law rules of tort dating back hundreds of years. To help you understand this system, our attorneys have been handling Maryland car accidents for over 70 years. Since then, we have resolved million-dollar cases for our clients and have helped several thousand Maryland residents recover compensation for their injuries.
Below, we will contrast Maryland’s at-fault system with the common no-fault system you may be familiar with. Then, we examine how Maryland’s at-fault system works in detail and how to leverage this system to recover maximum compensation in your case. Understanding the intricacies of this system is vital so you do not miss important deadlines, end up paying when you do not have to, and protecting your legal rights against the defendant. Then, we discuss personal injury protection (“PIP”) in Maryland. PIP is a form of no-fault coverage that applies in Maryland despite Maryland being an at-fault system. Lastly, we will discuss the importance of hiring an attorney in at-fault states like Maryland.
Understanding No-Fault vs. At-Fault Systems
There are key differences between a no-fault and an at-fault system for car insurance purposes. While they sound similar, they can have drastically different impacts on your case and your ability to recover compensation. We discuss each in turn.
No-Fault System
A no-fault system is one that makes pursuing personal injury matters a bit more difficult. First, if you are in a car accident, you must file a claim with your own insurance provider. As a byproduct of a no-fault system, you generally are required to have uninsured motorist coverage. Of course, states can still mandate this as part of your insurance coverage, but not all do. In a no-fault system, your own insurance covers your medical expenses, lost wages, and certain other costs. This is true regardless of who causes the accident. This type of system has a few advantages, followed by more persuasive cons.
As an advantage, this system does tend to be quicker. There is no search trying to identify the other driver’s insurer. In many instances, we need to wait for a police report or to track down the car’s owner before determining what insurance company and policy number covers the car. Of course, some drivers lie when you exchange information at the accident scene. These problems are often, though not always, forgotten in a no-fault system. Additionally, you have immediate access to money for medical bills and lost wages. The adverse insurer sometimes denies liability if you must prove fault in an at-fault system. In this instance, we must file suit to make them pay for your damages.
However, there are exceptions in many states that you should be aware of. First, you may not be able to recover damages for pain and suffering unless your injuries meet certain thresholds. Second, you may be limited to a far smaller amount to compensate you for your injuries. This depends on the statute of the jurisdiction you are in. Thus, it is always recommended to speak to a local attorney.
At-fault System
The basics of an at-fault system are straightforward. The driver determined to be responsible for causing the accident is liable for the damages. Of course, we contract with insurance companies to protect our assets in the event of a car accident. Further, many states, including Maryland, require that all drivers pay for an auto insurance policy as lawmakers understand that many individuals would otherwise be unable to afford a judgment against them and would escape liability. This would have adverse effects on accident victims. If you are in a car accident in a state that adheres to an at-fault system, you can file a claim with your own insurance company or the adverse driver’s company or sue the adverse driver directly.
There are many advantages to an at-fault system and a few disadvantages. First, you can seek full compensation from the at-fault driver’s insurance, which may cover all medical expenses, property damage, and more. Also, if the adverse driver’s insurance limits are insufficient to cover your damages, you can file suit against the individual or entity. While this is also possible under a no-fault system, there are complex hurdles you must navigate through. The downside to the at-fault system is simply that it is slower. While it is likely better for you in the long run, it may create a more difficult few months before settling your case.
How Maryland’s At-Fault System Works
Maryland’s at-fault system adheres to the standard at-fault system discussed above, with a couple of exceptions. The biggest exception to Maryland’s at-fault system is that there is a contributory negligence standard for determining liability. This means you cannot recover as a plaintiff if you are found to be 1% negligent at trial. This extreme rule makes recovery more challenging in Maryland, though far from impossible. Over the last 70 years, we have helped over 10,000 claimants recover in Maryland, demonstrating that it is still a good system if your lawyer knows how to navigate the process. The second part of Maryland’s at-fault system you should note is that no-fault coverage still exists and helps Maryland claimants in the short and long term.
How Personal Injury Protection (PIP) Works in Maryland
Personal injury protection, or PIP, can either be $2,500 or $10,000. This form of no-fault coverage exists to pay any immediate expenses. Generally, if you go to a hospital with a $7,500 bill, your PIP under your insurance or even the other driver’s policy in limited circumstances will go directly to that bill. This is a smart move by the Maryland legislature as it allows you to not worry about your medical expenses and focus on your recovery. Then, if you require physical therapy, the remaining $2,500 will go directly to that provider. However, most drivers who carry PIP only have $2,500 in their policy, while some carry the $10,000 option.
To best understand PIP in Maryland, you must also understand the collateral source rule. The collateral source rule allows you to recover from the negligent defendant despite you having collected compensation from your insurance, a collateral source.
Why Hiring an Attorney is Crucial in At-Fault States
The attorneys at Gelb & Gelb excel at handling car accident cases subject to an at-fault system. If you are in a Maryland car accident and are looking for advice on navigating the at-fault claims process, call our office today. Hiring an attorney to lead you through the process can make a big difference in securing the value of your case. Obtaining compensation in an at-fault system can be tricky, especially for trickier cases where you might be at fault. We will work to gather evidence, build your case, and hold the tortfeasor responsible for your injuries.
We offer all prospective clients free consultations and case evaluations at (202) 331-7227.
