Car insurance claim rules in Maryland

The clock on a Maryland claim

The Maryland Insurance Administration sets claim standards in COMAR 31.15.07, its regulation on paying property and casualty claims. The deadlines count working days, so weekends and holidays don't count.

The regulation sets no fixed number of days to pay; it requires prompt handling and forbids unreasonable delay. Send what the insurer asks for in writing and keep a dated copy. If deadlines slip, our page on claims that drag on shows how to put it in writing.

When a Maryland car is a total loss

Under Transportation Article §13-506, an insurer that acquires a car through a claim settlement must apply for a salvage certificate within 10 days. The certificate shows whether the cost to repair the car for road use is greater than 75% of its fair market value, or 75% or less. Towing, storage, rental and cosmetic repairs are left out of that repair cost.

• The insurer may total the car sooner. The 75% line decides how the title is branded; the insurer can still pay a total loss below it when repairs plus salvage value come close to the car's value.
• The settlement is the actual cash value of the car just before the crash, minus your deductible on your own policy.
• Test the number. Ask for the valuation report and check the comparable cars. Our guide to total loss claims covers what to look for.

Reporting a Maryland crash

Under Transportation Article §20-104, each driver in a crash must give their name, address and registration to the other people involved and to any police officer at the scene. If no officer is there and no one can receive that information, the driver must report the crash right away to the nearest police office. If anyone is hurt, call 911.

Maryland also has a written report duty. Under §20-107, the driver of each car in a crash that injures or kills anyone must report it to the Motor Vehicle Administration within 15 days, with proof of insurance. You don't have to if a police officer investigated and filed a report with the Department of State Police.

Contributory negligence, PIP and who pays

Maryland is an at-fault state that still uses contributory negligence. In 2013, in Coleman v. Soccer Association of Columbia, the state's highest court declined to replace the rule with comparative fault. Under contributory negligence, if you are found even partly at fault, you generally can't recover from the other driver.

• Personal injury protection (PIP) must be included in Maryland policies unless waived or rejected. The minimum benefits are up to $2,500 for medical expenses, 85% of lost income and household help (Insurance Article §19-505).
• Your own collision coverage pays to fix your car under your policy terms, which matters when fault is disputed.
• Uninsured motorist coverage pays when the at-fault driver has no insurance or too little; see uninsured motorist claims.

Deadlines to sue and where to complain

Under Courts and Judicial Proceedings §5-101, a civil action must generally be filed within three years of the crash, for injury and for property damage. Settlement talks don't stop the clock.

1. Ask the insurer in writing for the reason for a denial or a low offer and the policy language behind it.
2. Call the Maryland Insurance Administration at 1-800-492-6116.
3. File a complaint through the Administration's online consumer portal or by mail; our guide to insurance department complaints shows what to include.

Questions people ask