Maryland Lacking Proper Auto Insurance Limits

 

The idea behind auto insurance limits is that if you are injured in an accident that you will have access to care that you need. Your auto insurance company will provide the money for you to get that care, and the limits are usually above and beyond what you actually need. The amount of the limits is set state by state so some states have higher limits than others, and vice versa.
 
However, many states set their auto insurance limits years ago, and so they don’t really reflect how much money is needed for the injuries or repairs that you might need to your person or your car. That is why it is so important that these rates change over the course of time so that they reflect what is really needed.
 
In the case of Maryland, they set their auto insurance rates years ago, and have not changed them since. This means that they are grossly outdated and are in need of an increase. The state of Maryland set their auto insurance rates back in 1972, when the average income was $11,800. At this time, doctor visits were on average $5, a new car was $3,853, a new home was $27,550 and a gallon of gasoline cost fifty cents.
 
Needless to say, the rates that are currently set at $20,000 per person and $40,000 per incident need to be increased. Experts say that the new rate should be more like $103,000 and $206,000 if they were adjusted for inflation over the past 38 years. Instead there is a new bill, HB 825, and that would gradually increase them to $30,000 and $60,000 for now.

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