Earlier this week, Maryland came one step closer to mandating increased bodily injury liability limits for their vehicle owners. In a 97-36 vote, the Maryland House of Delegates approved a measure to increase the coverage. Here are some of the key details, as reported by Insurance and Financial Advisor:
The measure, sponsored by 18 Maryland legislators, increases the minimum amounts of coverage for bodily claims or death from a motor vehicle accident from $20,000 to $30,000 for one person, and from $40,000 to $60,000 for any two or more individuals. The proposed legislation would apply to all vehicle liability insurance policies issued, delivered or renewed in the state on or after Jan. 1, 2011, according to the text of the bill.
The fiscal note accompanying the bill said there is not enough data to show an impact on Maryland’s general fund as a result of the measure, but that special fund revenues for the Maryland Insurance Administration may increase by about $25,000 in fiscal year 2011, assuming 200 motor vehicle insurers pay the $125 rate filing fee to comply.
If the Senate Finance Committee gives a favorable report, the bill would then move to the full Maryland Senate.
The increased liability coverage requirement, if passed, would provide an opportunity for injured victims of automobile collisions, depending on the circumstances, to seek additional compensation for their injuries through the increased liability coverage.