Maryland Automobile Insurance and Personal Injury Protection

A question I frequently hear is whether an automobile insurance company in Maryland can raise rates or cancel the policy when a claim is made for personal injury protection benefits. The Maryland Gen. assembly makes it clear in the statute below that the answer is "no".

In case you don't know, PIP in Maryland covers your medical expenses, lost wages and or funeral expenses up to a statutory minimum of $2500. PIP is required to be sold along with the automobile liability policy unless the insured specifically rejects coverage. Even though I am not fond of insurance I always tell my clients to have PIP. It is fairly cheap and very quick and you can usually raise your limits above $2500. Personally I raised it to my maximum of $10,000. I ride a bicycle and the PIP can cover income that I lose up to $10,000 if the car strikes me while I am on my bicycle.

MD Code Ins. 19-507 Personal injury protection coverage -- When benefits payable; coordination of policies; surcharge; subrogation (Maryland Code (2011 Edition))



(a) When benefits payable. -- The benefits described in Sec. 19-505 of this subtitle shall be payable without regard to:

(1) the fault or nonfault of the named insured or the recipient of benefits in causing or contributing to the motor vehicle accident; and

(2) any collateral source of medical, hospital, or wage continuation benefits.

(b) Coordination of policies. --

(1) Subject to paragraph (2) of this subsection, if the insured has both coverage for the benefits described in Sec. 19-505 of this subtitle and a collateral source of medical, hospital, or wage continuation benefits, the insurer or insurers may coordinate the policies to provide for nonduplication of benefits, subject to appropriate reductions in premiums for one or both of the policies approved by the Commissioner.

(2) The named insured may:

(i) elect to coordinate the policies by indicating in writing which policy is to be the primary policy; or

(ii) reject the coordination of policies and nonduplication of benefits.

(c) Surcharge prohibited. -- An insurer that issues a policy that contains the coverage described in Sec. 19-505 of this subtitle may not impose a surcharge or retier the policy for a claim or payment made under that coverage and, at the time the policy is issued, shall notify the policyholder in writing that a surcharge may not be imposed and the policy may not be retiered for a claim or payment made under that coverage.
(d) Subrogation. -- An insurer that provides the benefits described in Sec. 19-505 of this subtitle does not have a right of subrogation and does not have a claim against any other person or insurer to recover any benefits paid because of the alleged fault of the other person in causing or contributing to a motor vehicle accident.

If you have questions about your insurance coverage call me.