Second Senate Committee Okays Minimum liability auto insurance bill


CMSTK-00038865-001A Bill that raises the Minimal Insurance Coverage drivers in Maryland must have on their insurance policies was passed by a second Senate Committee on Monday.

The Judicial Proceedings Committee held hearings on the bill and it showed statements from victims of various accidents supportive of the change and opposed by people who advocate for the poor

“We are seriously concerned about what this will do to the most vulnerable people in the state,” Job Opportunities Task Force’s Melissa Broome stated.

90 percent of drivers involved in automobile accidents are low income persons according to Frank Boston.

The minimum coverage has been increased from $40,000 for a crash and $20,000 for an individual to $60,000 for a crash and $30,000 for every individual. The Senate Committee votes 8-3 towards the bill.

The legislation was passed by the Senate Finance Committee . Negative votes from the committee would have reduced the prospects of the bill.

The bill now goes in front of the whole Senate after being passed by the House. If the Governor approves it without any changes being made, the minimum coverage will go up for the first time since the 1970s.

The Legislation opposed by the trial lawyers of the state, who said the old minimal coverage has been overrun by inflation and insurance companies who say the bill will make companies increase its minimal coverage.

Maryland’s present minimal coverage is below the countries average coverage rate. The increase would boost the state to the top ten. A number of states fix the minimum coverage at $25,000 and $50,000. The committee refused to pass an amendment that would bring Maryland to this level.