Maryland Car Accident Attorney Blog

As a Maryland auto accident attorney, I know how costs can add up for the average family. When a car, truck or motorcycle accident causes a wage earner to be hospitalized for injuries suffered during a crash, medical costs and lost earnings can put many families into a terrible bind. Because carrying auto insurance on your vehicle is required by law, premiums are another cost that simply cannot be avoided.

Recently, news out of Annapolis shows that the state legislature is working on a bill that would likely increase insurance premiums for nearly every one of the 61,000 Maryland Automobile Insurance Fund customers. At the time of the news article, the bill passed through the House despite the protestations of the Republican side.

The bill would require policyholders to carry a minimum security of $30,000 for individuals and $60,000 for multiple drivers. Currently those minimums are $20,000 and $40,000 respectively and have not changed since 1972 when MAIF was established following legislation that made auto insurance mandatory.

According to new reports, House GOP leaders argue that the higher premiums would cause some MAIF policyholders to drop their coverage altogether and bump up other insurance carriers' rates. The argument is that this will hurt people at the bottom end of the socioeconomic ladder; effectively a burdensome tax increase.

As law, average premiums in Baltimore city would increase by 9.3 percent, or $174, to $2,035. In inner Prince George's County, rates would go up by 8.2 percent, or $89, to $1,178, according to MAIF estimates. Opponents argue that the increases would put automobile insurance out of reach for some policyholders.

On the other hand, the bill’s supporters say that increasing the minimum security is long overdue. According to a spokesman for the Maryland Association for Justice Inc., "It's to make sure someone who gets injured by a negligent driver is compensated so they can pay their medical bills and receive their lost wages."

The argument for the bill includes the rational that current minimums were set in 1972 when the average household income was $11,800 and gasoline cost 50 cents a gallon. According to the article, the $20,000 minimum security would be equal to $101,600 in today's dollars, which means that the value of that coverage has gone down significantly.

Minimum auto insurance limits could rise, Gazette.net, March 26, 2010

In my Baltimore injury law office we often hear of accidents involving service vehicles. Taxi cabs, hire cars, limousines and shuttle busses can all be involved in traffic collisions. As passenger, you can be seriously injured in even the simplest automobile accidents. It doesn’t take much to cause an unbelted occupant of a motor vehicle to sustain broken bones, cuts and bruises and even debilitating injuries.

Every Maryland resident who rides as a passenger in a cab, bus or other type of fare-paying transportation should be aware of the potential problems associated with uninsured carriers. And even if you don’t travel in these potentially costly conveyances, you may have an elderly relative or friend who often uses one to get to and from the supermarket or other metropolitan location.

This is especially important because, as we all know, automobile accidents can happen anywhere, any time. People on a fixed budget will find uninsured cabs and hire cars particularly difficult to turn when they offer such low fares. But you must ask yourself the question, “Is it worth the possibly devastating medical or work-loss costs should you become a victim of that driver’s error or negligence?”

It is important to keep in mind that if you or a loved one becomes injured in a vehicle that is not properly insured, you may have a very difficult time recovering medical and other costs. Legitimate cab and hire car companies are more expensive for many reasons, but one good reason is that they carry the proper insurance. As a Maryland auto accident lawyer, I am well aware of the risks involved in riding with an uninsured or under-insured driver.

And while it may not seem so at the time, hailing a budget-priced cab or hire car could be financially irresponsible if that vehicle is involved in an accident with you riding inside.

Even supermarket managers and owners of grocery stores do not realize the liability that they could incur by allowing uninsured "courtesy drivers" to solicit their customers’ business. These so-called “hackers” operate illegally in part because they do not care to pay for commercial auto insurance, which the law requires.

Based on reports, the Maryland Auto Insurance Fund, which provides coverage for many sedans and taxis, currently has a base rate of about $4,000 per year for such vehicles operating in Baltimore. Hackers may very well have personal auto insurance, but that doesn’t always cover them if they injure a paying customer, especially if they are operating their vehicle without the knowledge of their insurance company.

The point here is you should always think twice when choosing paid transportation. At the time, it may seem penny wise to hail that cheap “hacker” cab rather than a legitimate, yet more expensive insured taxi. But that low fare may not be such a great deal if you are hurt or severely injured in a crash.

A recent editorial in the Baltimore Sun brings to light a very important topic and something that every Maryland resident should consider the next time they consider hailing a hire car at a supermarket or anywhere else for that matter. Auto accidents can happen anywhere, and while it is difficult to turn down a bargain basement fare price for a ride around the city, if you are injured in a vehicle that is not properly insured, you may have a harder time recovering medical and other costs.

Remember that legitimate cab and hire car companies charge higher rates because, among other things, they carry the proper insurance. As Maryland auto accident lawyers, Lebowitz & Mzhen, LLC is well aware of the risks involved in riding with an uninsured or under-insured driver.

According to the editorial, taking such a hire car is dangerous. Apparently the risks are so misunderstood that managers of the grocery stores where hacks are operating as "courtesy drivers" either do not know or, worse, they are ignoring their potential liability. These so-called “hackers” operate illegally in part because they do not care to pay for commercial auto insurance, which the law requires.

The Maryland Auto Insurance Fund, which provides coverage for many sedans and taxis, currently has a base rate of about $4,000 per year for such vehicles operating in Baltimore. Hackers may very well have personal auto insurance, but that won’t necessarily cover them if they injure a paying customer, especially if they are operating their vehicle without the knowledge of their insurance company.

As the editorial further explains, hackers do not operate solely in areas not serviced by legal cab companies. The writer goes on to remind the public that hackers operate all over the Baltimore metropolitan area. And because they are not paying, among other things, the high insurance premiums that legitimate companies pay, hackers can charge much less. But that low fare may not be such a great deal if you are hurt or severely injured in a crash.

Should the driver be involved in an accident and his or her insurance company learns that they were working as a for-hire driver at the time, it is almost a certainty that the insurance company will deny any and all claims related to that accident.

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