If you’ve ever looked at your auto insurance policy and felt confused, you’re not alone. Terms like “liability,” “collision,” “comprehensive,” and “UM/UIM” get thrown around as if everyone should already know what they mean. But most drivers never get a clear explanation of what they’re actually paying for.
We’ve helped drivers in Maryland and D.C. understand their coverage since 1971, and we can tell you this: informed drivers make better decisions. So let’s walk through the main types of coverage in plain English. No jargon, no fine print, just the basics you need.
Liability Coverage: The One You’re Required to Have
Liability coverage is the foundation of any auto policy. It pays for injuries or damage you cause in an accident. If you hit someone’s car or hurt someone in a crash, liability coverage pays their medical bills and property damage, up to your policy limits.
Maryland requires drivers to carry at least $30,000 per person and $60,000 per accident for bodily injury, plus $15,000 for property damage. Washington, D.C. requires $25,000 per person and $50,000 per accident for bodily injury, with $10,000 for property damage.
But liability coverage doesn’t pay for your injuries or your car. It protects the other guy. That’s why you need other types of coverage, too.
Collision and Comprehensive: Protecting Your Own Vehicle
Collision coverage pays to repair or replace your car if you’re in an accident, regardless of who caused it. If you hit a guardrail, collide with another car, or flip your vehicle, collision coverage has your back.
Comprehensive coverage is different. It covers damage to your car from things other than a collision, like:
- Theft
- Fire
- Vandalism
- Hail
- Flooding
- Hitting a deer
- If a tree branch falls on your car
Neither collision nor comprehensive is required by law in Maryland or D.C., but if you’re financing or leasing a vehicle, your lender will almost certainly require them. Even if you own your car outright, these coverages are worth considering if you couldn’t afford to replace your vehicle out of pocket.
Uninsured/Underinsured Motorist Coverage: Protection From the Unknown
Not everyone on the road has insurance. Uninsured/underinsured motorist coverage, often called UM/UIM, protects you if you’re hit by a driver with no insurance or insufficient coverage to pay for your injuries.
Maryland requires UM/UIM coverage at the same limits as your liability coverage: $30,000 per person and $60,000 per accident. D.C. requires $25,000 per person and $50,000 per accident for uninsured motorist bodily injury, plus $5,000 for uninsured motorist property damage.
We always recommend keeping your UM/UIM limits as high as you can afford. It’s one of the most valuable coverages on your policy, and you often don’t need it until you do.
Personal Injury Protection: Medical Bills After a Crash
Personal Injury Protection, or PIP, covers medical expenses and lost wages for you and your passengers after an accident, regardless of who was at fault. Maryland requires insurers to offer PIP with a minimum of $2,500 per person, but you can waive it in writing.
D.C. operates under a no-fault system, meaning your insurance pays for your injuries first, no matter who caused the crash. PIP is a key part of that system, helping you get medical care quickly without waiting for a liability investigation.
What Coverage Do You Actually Need?
The minimum coverage required by law is just that: the minimum. It may not be enough to protect you in a serious accident. We always tell our customers to think about what they have to lose. If you have assets, a home, or a family depending on your income, higher limits are worth the extra cost.
For drivers with a lapse in coverage, a bad record, or a denial from another insurer, MAIF coverage can be a solid option. MAIF offers the same core coverages we’ve described here, and at Gebco, we can pair it with our Path to Lower Rates to help you save over time.
We’re Here to Help You Understand Your Options
Insurance doesn’t have to be confusing. When you work with Gebco, you get a real person who explains your coverage in plain language and helps you choose what’s right for your budget and your life. We’ve helped over 500,000 drivers in Maryland and D.C. find coverage they understand and can afford.
Call us, stop by our office, or reach out online. We’ll walk you through every option, answer every question, and make sure you never feel in the dark about your policy again.