Personal Injury Protection (PIP), a type of coverage that pays out after a crash no matter who caused it, is the first source of payment available after a Maryland car accident, and the one most frequently misunderstood. It has a dollar limit, a strict filing deadline, and clear categories it won’t cover. Because PIP is only one layer of recovery, a Maryland car accident attorney looks at how it fits alongside a claim against the at-fault driver before advising a client on next steps. Here’s what this coverage actually pays for, what happens once it runs out, and how it works together with a claim against the driver who caused the crash.
Key Takeaways
- Maryland PIP pays a modest, set minimum amount per person, no matter who caused the crash, covering medical bills, a large portion of lost income, help with household tasks you can’t do yourself, and funeral costs.
- Most PIP policies come with a filing deadline that’s shorter than people expect. Miss it, and you typically lose the benefit entirely.
- PIP never pays for pain and suffering, vehicle repair, or property damage; those only come from a claim against the driver who caused the crash.
- Under a legal rule sometimes called the “collateral source rule,” money you already received from PIP doesn’t reduce what you can recover in a claim against the at-fault driver; the two are treated as completely separate.
- Maryland follows a strict rule, upheld by Maryland’s highest court, where being even slightly at fault yourself can block you from recovering anything in a claim against the other driver. That’s exactly why PIP matters so much; it’s a guaranteed payout you can count on regardless of fault.
What Maryland’s Mandatory PIP Covers
Maryland insurers must offer PIP on every auto policy; it applies automatically unless the policyholder rejects it in writing. Under Maryland Insurance Article § 19-505, PIP pays regardless of fault, up to a combined statutory minimum of $2,500 per person. Insurers also sell higher optional limits, commonly $5,000, $7,500, or $10,000.
Car accident insurance claim form and pen on office desk, representing Maryland PIP coverage after a car accident
That combined limit, whichever amount you carry, is split across these categories, and every dollar paid in one reduces what’s left for the others:
- Medical and related expenses: hospital, surgical, dental, X-ray, ambulance, prosthetic, and professional nursing costs, if reasonable, necessary, and incurred within three years of the crash.
- Lost income: 85% of income lost as a direct result of the accident, available to anyone earning wages, salary, or business income at the time of the crash.
- Essential household services: reimbursement for hiring someone to perform household duties childcare, home maintenance the injured person can no longer do, if that person was not earning income.
- Funeral expenses: paid from the same combined limit in a fatal-accident claim.
Coverage extends to the named insured, resident family members, permissive users of the insured vehicle, vehicle passengers, and pedestrians struck by the insured vehicle.
Most Maryland PIP policies also contain a one-year claim-filing deadline, authorized under Md. Code, Insurance Article § 19-508. Missing it typically forfeits the benefit regardless of how well-documented the medical bills are.
When PIP Runs Out and What Comes Next
A $2,500 minimum policy can be exhausted by a single ambulance ride and an ER visit. Even a $10,000 policy is frequently consumed by a few weeks of imaging, injections, or physical therapy for a moderate soft-tissue or orthopedic injury.
Once PIP benefits are exhausted, three sources remain:
- Your own health insurance, subject to your deductible, copays, and network restrictions.
- Disability coverage, if you carry it, to continue replacing lost income.
- A liability claim against the at-fault driver, the only route to recovering categories PIP never covers at all: pain and suffering, permanent impairment, disfigurement, and future medical treatment.
PIP does not pay for vehicle repair, other property damage, or any damages tied to fault those exist only in a liability claim against the responsible driver. Coordinating a PIP claim and a liability claim at the same time, without inadvertently undercutting either one, is exactly where the guidance of an experienced Maryland personal injury legal team matters most. If your bills already exceed your PIP limits, it’s worth reaching out; you can contact Mike Slocumb Law Firm directly to have your policy and claim reviewed at no cost.
How PIP Interacts With a Liability Claim Against the At-Fault Driver
Maryland follows the collateral source rule. As the Court of Appeals of Maryland held in Haischer v. CSX Transportation, Inc., 381 Md. 119 (2004), an injured person is ordinarily entitled to recover the full amount of provable damages from the at-fault party, regardless of compensation already received from a source unrelated to that party. PIP and a liability recovery are legally separate; there is no dollar-for-dollar offset between them.
The exact value of any liability claim depends entirely on the individual facts, the severity and permanence of the injury, the available liability policy limits, and the venue where the claim is filed. No verified statewide dataset supports a general dollar figure or average outcome for this overlap, and you should not rely on one when evaluating a specific claim.
Two limits on that recovery matter as much as the collateral source rule itself.
Contributory Negligence Can Still Bar Recovery
Maryland remains one of a small number of jurisdictions still applying the common-law doctrine of contributory negligence. The Court of Appeals of Maryland reaffirmed it in Coleman v. Soccer Association of Columbia, 432 Md. 679 (2013): if a claimant is found to bear any percentage of fault for the crash, a liability claim against the other driver can be barred entirely, regardless of how badly the other driver was at fault. This makes PIP’s guaranteed, no-fault payout the one recovery not affected by a fault dispute.
Punitive Damages Require Proof of Actual Malice
Maryland has no statute authorizing punitive damages in an ordinary auto negligence case. Under Owens-Illinois, Inc. v. Zenobia, 325 Md. 420 (1992), a claimant must prove, by clear and convincing evidence, that the at-fault driver acted with actual malice or a deliberate intent to injure. Ordinary negligence, and even gross negligence, does not meet this standard. Punitive damages in a Maryland car accident case are the exception, not a routine element of recovery, and apply only where this specific standard is met.
Frequently Asked Questions
How much is Maryland’s minimum PIP coverage?
The statutory minimum is $2,500 in combined PIP benefits per person, covering medical expenses, 85% of lost income, essential household services, and funeral costs. Insurers also offer higher optional limits, typically up to $10,000.
Do I have to repay my PIP benefits after I settle with the at-fault driver’s insurer?
No. Under Maryland’s collateral source rule, PIP benefits are not deducted from, and do not need to be repaid out of, a later liability settlement or verdict. The two sources of recovery are treated as legally separate.
Can I still file a claim against the at-fault driver if I already used up my PIP benefits?
Yes. PIP is meant to provide fast, no-fault payment for early expenses. Once it’s exhausted, a liability claim against the at-fault driver’s insurer remains available for any remaining medical bills, lost income, and non-economic damages like pain and suffering subject to Maryland’s contributory negligence rule.
What happens if I miss Maryland’s one-year PIP filing deadline?
Most Maryland PIP policies set a one-year deadline from the date of the accident, authorized under Md. Code, Insurance Article § 19-508. Missing that deadline typically forfeits the PIP benefit, regardless of how well-documented the underlying medical bills are.
If I was partly at fault for the accident, can I still recover PIP benefits?
Yes. PIP is paid regardless of fault, so it remains available even if you contributed to the crash. Contributory negligence affects your ability to recover from the at-fault driver’s liability insurer; it does not affect your own PIP claim.
Get the Full Value of Your Claim
If your medical bills, lost income, or non-economic damages exceed what your PIP policy paid, a claim against the at-fault driver’s liability insurer may recover the difference, but the collateral source rule, contributory negligence, and the actual-malice standard for punitive damages each affect that claim differently, and no two cases resolve the same way.
Contact Mike Slocumb Law Firm today for a review of your PIP claim and your options against the at-fault driver.