Maryland Governor signs new measure to raise auto insurance requirements

Maryland drivers will pay more in auto insurance beginning in 2011.Auto insurance coverage rates will rise for Maryland residents beginning January 1, 2011, Insurance and Financial Advisor reports.

On May 4, Governor Martin O’Malley signed a piece of legislation that will affect all auto liability insurance policies. It increases the minimum amount of coverage for bodily claims or death resulting from a car crash, the Advisor said. Single individuals will be required to carry coverage of $30,000 instead of $20,000 and for two or more people, the coverage will be $60,000 instead of $40,000.

After several years without an update, the governor’s office felt it was time to make necessary changes that the rest of the country was making. O’Malley spokesman Shaun Adamec told the Advisor that "ultimately, this national trend is designed to protect drivers who are involved in accidents and their families from the undue burden of exorbitant out-of-pocket expenses if the other driver is carrying insufficient insurance coverage."

Not everyone is pleased with the changes, including the American Insurance Association. They, along with others, are opposed to the change in coverage minimums, the Advisor said.ADNFCR-3298-ID-19771580-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

One Response to “Maryland Governor signs new measure to raise auto insurance requirements”

  1. kathy
    03. May, 2011 at 3:18 am #

    Why if you are carrying insurance well above the new minimum should your insurance jump $700 for 6 months?

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