Car accidents happen every day across Maryland — from the busy highways of Baltimore to the suburban streets of Montgomery County. What many drivers don’t expect, however, is how quickly a car accident can turn into a complicated legal and financial battle.
When you’re injured and facing rising medical bills, lost wages, and property damage, you rely on insurance to help you recover. But what happens when the insurance company delays, denies, or undervalues your claim? That’s when understanding the difference between Maryland car accident claims vs. insurance disputes becomes critical.
In this detailed guide, we’ll explain how Maryland’s laws impact your recovery, what to do if an insurer challenges your claim, and how a legal professional can protect your rights when the process gets complicated.
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Understanding the Basics of Car Accident Claims in Maryland
When a car crash happens, Maryland law allows the injured party to pursue compensation from the at-fault driver. This process is known as a personal injury claim.
In most cases, you’ll begin by filing a claim with the other driver’s insurance company. The goal is to obtain compensation for:
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Medical expenses (hospital bills, therapy, prescriptions)
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Lost wages from missed work
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Property damage (vehicle repairs or replacement)
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Pain and suffering
However, things rarely go smoothly. Insurance adjusters work for their company — not for you. They may dispute fault, minimize your injuries, or offer low settlements that don’t reflect your actual losses. That’s when your claim can turn into an insurance dispute.
Maryland’s At-Fault Insurance System
Maryland follows a “fault-based” insurance system. This means the person responsible for causing the accident (and their insurer) must pay for the damages.
However, Maryland also has one of the strictest negligence standards in the U.S. — known as contributory negligence.What Is Contributory Negligence?
Under this rule, if you’re found even 1% at fault for the crash, you may lose the right to recover any compensation. Insurance companies often exploit this rule to deny claims, arguing that you shared partial blame.
For example:
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If you were speeding slightly when another driver ran a red light and hit you, the insurer might argue that your speed contributed to the collision.
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Even minor fault can eliminate your entire claim.
This is why working with a skilled attorney is essential — to build strong evidence and prove full fault lies with the other party.
Types of Insurance Coverage That Affect Maryland Car Accident Claims
To understand how disputes arise, you must first know the insurance types that come into play after a car crash:
1. Liability Insurance
Maryland requires all drivers to carry minimum liability coverage:
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$30,000 for bodily injury per person
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$60,000 for bodily injury per accident
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$15,000 for property damage
This coverage pays for damages you cause to others.
2. Personal Injury Protection (PIP)
PIP coverage is optional but extremely valuable. It pays for medical expenses and lost wages regardless of fault — up to a limit (often $2,500).
3. Uninsured/Underinsured Motorist (UM/UIM) Coverage
If the at-fault driver doesn’t have enough insurance (or any at all), UM/UIM coverage steps in to pay for your injuries and losses.
4. Collision and Comprehensive Coverage
These cover the cost of repairing or replacing your own vehicle, depending on your policy terms.
Common Causes of Insurance Disputes After a Maryland Car Accident
Insurance disputes typically arise when there’s disagreement over fault, damages, or coverage limits. Some of the most common disputes include:
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Disputed Liability: The insurer claims you were partly or fully responsible for the crash.
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Medical Necessity Challenges: Insurers argue your medical treatment wasn’t necessary or was unrelated to the accident.
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Delayed Payments: The insurance company stalls investigations or ignores your claim.
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Lowball Settlements: You receive an offer that doesn’t come close to covering your actual losses.
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Policy Exclusions: The insurer denies payment based on unclear or hidden policy terms.
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Uninsured/Underinsured Claims: The insurer disputes the applicability of your UM/UIM coverage.
Each of these situations requires careful documentation, persistence, and often legal representation to resolve effectively.
Steps to Take Immediately After a Car Accident in Maryland
The actions you take right after the crash can significantly impact your ability to recover compensation. Follow these steps carefully:
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Call 911 — Report the accident and request medical assistance.
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Get Medical Attention — Even minor injuries can worsen over time.
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Document the Scene — Take photos of the vehicles, road conditions, and visible injuries.
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Exchange Information — Collect driver’s license, insurance, and contact details.
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Contact the Police — A police report can serve as crucial evidence later.
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Notify Your Insurance Company — Report the accident but avoid giving recorded statements without legal advice.
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Consult a Lawyer — Before dealing with insurers, get professional guidance.
A seasoned attorney familiar with personal injury and car accident claims can help protect you from mistakes that might weaken your case.
What Happens When an Insurance Company Disputes Your Claim
If the insurer denies liability or refuses to pay fairly, the claim transitions into an insurance dispute. Here’s what typically happens:
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Investigation Phase:
The insurance company reviews evidence, interviews witnesses, and examines police reports. -
Claim Evaluation:
Adjusters may question the severity of your injuries, argue preexisting conditions, or challenge medical costs. -
Denial or Reduced Offer:
You might receive a denial letter or a settlement offer far below your expenses. -
Appeal or Legal Action:
You can appeal internally with the insurer or file a personal injury lawsuit in Maryland court.
Legal support is vital here — attorneys understand how to navigate complex negotiations and compel insurers to act in good faith.
Bad Faith Insurance Practices in Maryland
Under Maryland law, insurers have a legal duty to act in good faith when handling claims. When they fail to do so, it’s considered bad faith.
Examples include:
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Failing to investigate promptly
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Unreasonably denying a valid claim
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Misrepresenting policy terms
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Ignoring communication
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Offering unreasonably low settlements
Victims of bad faith insurance practices can take legal action under Maryland Insurance Code § 27-1001, which may allow recovery of additional damages and attorney fees.
How a Lawyer Can Help Resolve Insurance Disputes
Insurance companies have entire teams of adjusters and attorneys working to protect their bottom line. You deserve the same level of advocacy on your side.
A Maryland car accident lawyer can:
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Review your insurance policy for coverage loopholes
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Gather evidence proving the other party’s liability
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Calculate full damages, including future medical costs
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Negotiate with insurers for fair compensation
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File a lawsuit if necessary
They can also handle all communication, ensuring you don’t say anything that could be used against your claim.
The Legal Process: From Claim to Lawsuit
If negotiation fails, your attorney may recommend filing a personal injury lawsuit. The process typically unfolds as follows:
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Filing the Complaint:
Your attorney submits a formal claim in a Maryland civil court. -
Discovery:
Both sides exchange evidence, documents, and witness statements. -
Mediation or Settlement Talks:
Most cases settle before trial through negotiation or mediation. -
Trial:
If no agreement is reached, your lawyer presents your case before a judge or jury. -
Verdict and Compensation:
If successful, you’ll receive damages for medical bills, lost income, and pain and suffering.
While litigation takes time, it’s often the only way to achieve fair compensation when insurers refuse to cooperate.
Important Deadlines in Maryland Car Accident Cases
Maryland law imposes strict time limits on filing claims and lawsuits.
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Personal Injury Lawsuit: 3 years from the date of the accident.
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Property Damage Claim: 3 years from the date of loss.
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Wrongful Death: 3 years from the date of death.
Missing these deadlines could mean losing your right to recover entirely. Acting quickly ensures your attorney can gather evidence and file within the statute of limitations.
Evidence That Strengthens Your Maryland Car Accident Claim
Strong evidence can make or break your case. Key items include:
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Police accident reports
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Medical records and bills
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Witness statements
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Photos and videos from the scene
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Vehicle repair estimates
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Proof of lost wages or income
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Expert testimony (medical, accident reconstruction, etc.)
An attorney will collect, organize, and present this evidence effectively to counter any dispute from the insurance company.
Comparing Settlements vs. Litigation
When your claim becomes an insurance dispute, you face two main options: settle or litigate.
Settlement Advantages:
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Faster resolution
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Lower legal costs
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Less stress and uncertainty
Litigation Advantages:
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Potential for higher compensation
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Public accountability for bad faith insurers
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Leverage for future settlement negotiations
A skilled lawyer will help you decide which approach best fits your situation.
Preventing Future Insurance Disputes
While not all disputes can be avoided, these steps can minimize problems:
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Review your insurance policy annually.
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Keep records of all communication with insurers.
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Notify your insurance company immediately after an accident.
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Avoid signing anything without legal review.
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Seek legal help early in the process.
Knowledge and preparation are your best defense against insurance company tactics.
FAQ: Maryland Car Accident Claims and Insurance Disputes
1. What should I do if the insurance company denies my claim?
You can appeal the decision, provide additional evidence, or pursue legal action. Consult a Maryland attorney to evaluate your options.
2. How long does it take to resolve an insurance dispute?
It depends on complexity — some resolve in weeks, while others take months or years if litigation is required.
3. Can I sue my own insurance company?
Yes. If your insurer acts in bad faith or denies coverage unfairly, you can file a lawsuit to enforce your rights.
4. What if both drivers share fault?
Under Maryland’s contributory negligence rule, you cannot recover compensation if you’re even 1% at fault. Strong legal representation is critical in such cases.
5. Will hiring a lawyer cost me upfront fees?
Most personal injury attorneys work on a contingency fee basis, meaning they only get paid if you win your case.
CTA: Protect Your Rights After a Maryland Car Accident
Dealing with insurance companies after a car accident can be overwhelming — especially when they dispute your claim or deny responsibility. Don’t face these challenges alone.
The legal team at Houlon Berman has extensive experience handling personal injury and car accident claims in Maryland. They understand how insurers operate and know how to fight back when your financial recovery is at stake.
If you’ve been injured in a Maryland car crash and are struggling with an insurance dispute, it’s time to take control of your situation.
Contact Houlon Berman today to schedule a consultation and ensure your rights — and your future — are fully protected.
Final Thoughts
Car accidents are stressful enough without battling insurance companies. Unfortunately, many Maryland drivers discover that the process of recovering fair compensation can be as painful as the accident itself.
Understanding your rights under Maryland law — and the difference between a claim and a dispute — is the first step toward securing justice. With professional legal guidance, you can overcome insurance resistance, prove liability, and recover the compensation you rightfully deserve.
If you’re ready to stand up for your rights, start by connecting with Maryland’s trusted advocates at Houlon Berman — because your recovery deserves nothing less than strong, experienced representation.