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Maryland Car Insurance Claim Laws

How long insurers have to handle your car insurance claim in Maryland, when a car counts as a total loss, and what to do if the insurer falls behind.

Last reviewed October 24, 2026 by Ali Ahmad, MyAutoTriage editor.

Short answer

In Maryland an insurer must acknowledge your claim within 15 working days, accept or deny it within 15 working days after proof of loss, and pay with no fixed deadline (a reasonable time). Total loss rule: repairs cost 75% or more of the car's actual cash value. Deadline to file an injury lawsuit: 3 years.

Claim-handling deadlines in Maryland

Acknowledge your claim15 working days
Accept or deny it15 working days after proof of loss
Pay after agreementNo fixed deadline (a reasonable time)

Rule: COMAR 31.15.07.03B(10), (12), (14), (15); 31.15.07.04B; 31.15.07.07.

The decision clock usually starts once the insurer has the proof of loss it asked for, not on the day of the accident. Ask the adjuster in writing what they still need, and keep a dated log of everything you send.

When a car is totaled in Maryland

Repairs cost 75% or more of the car's actual cash value. Insurers may still declare a total loss below 75%.

Example: for a car worth $15,000, a repair estimate of $11,250 or more (75%) makes it a total loss.

Rule: Md. Code, Transp. § 13-506(c)(2)(ii), (c)(4)-(5).

If the insurer misses a deadline or lowballs you

  1. Send a short written follow-up that names the deadline and asks for a decision by a specific date.
  2. If the offer is low, answer with evidence: repair estimates, comparable cars for sale, receipts.
  3. Still stuck? File a free complaint with the Maryland Insurance Administration.

If you have to sue the other driver in Maryland

Most claims settle without a lawsuit, but these rules decide how much leverage you have when you claim against the at-fault driver's insurer.

If you were partly at faultPure contributory negligence
Deadline to sue for injuries3 years
Deadline to sue for car damage3 years

If you are even slightly at fault (as little as 1%), you can be barred from recovering anything from the other driver.

The lawsuit deadline (statute of limitations) usually runs from the accident date, and an open insurance claim does not pause it.

Rules: Coleman v. Soccer Ass'n of Columbia, 69 A.3d 1149 (Md. 2013); Md. Code, Cts. & Jud. Proc. § 5-101.

PIP (no-fault) claim deadlines in Maryland

  • The policy can require your claim within 12 months of the accident, but not less.
  • Insurer must pay within 30 days after it gets satisfactory proof of claim.
  • 1.5% a month simple interest on overdue payments.

Law: Md. Code, Ins. § 19-508. PIP deadlines in other no-fault states

Sales tax and fees on a total loss in Maryland

Cash settlement on a substantially similar car must include all applicable taxes and transfer fees; third-party settlements too. Rule: COMAR 31.15.12.04.

Total loss tax and fee rules in every state

Diminished value in Maryland

  • From the at-fault driver's insurer: Yes, if you can prove it. Fred Frederick Motors v. Krause, 277 A.2d 464 (Md. Ct. Spec. App. 1971).
  • From your own insurer: Not settled; depends on your policy. No ruling on auto policies.

Diminished value rules in every state

Claim laws in nearby states

If the accident happened in another state, or the other driver is insured there, these rules may matter too:

  • Virginia: Total loss formula; decision within 15 calendar days after proof of loss
  • Pennsylvania: Total loss formula; decision within 15 working days after proof of loss
  • Delaware: Insurer decides (no fixed %); decision within 30 days after proof of loss

Free tools for your claim

Not legal, financial, or insurance advice. This page summarises rules and data for general education only. Insurance laws, deadlines, and formulas vary by state, by policy, and by insurer, and they change over time. Verify anything important with your insurance policy, your state department of insurance, or a licensed attorney before relying on it. Some of these rules apply only to certain claim types.

Frequently asked questions

How long does an insurance company have to pay a claim in Maryland?

In Maryland the insurer must accept or deny the claim within 15 working days after proof of loss, and pay with no fixed deadline (a reasonable time). The clock generally starts once the insurer has the proof of loss it asked for, so keep a dated record of what you sent.

When is a car considered totaled in Maryland?

In Maryland: repairs cost 75% or more of the car's actual cash value. Insurers may still declare a total loss below 75%. You can challenge the actual cash value the insurer uses.

How long do I have to sue after a car accident in Maryland?

In Maryland you generally have 3 years from the accident to file an injury lawsuit and 3 years to sue for damage to your car. An insurance claim does not pause this deadline, so if talks drag on, check the date and speak to a lawyer well before it passes.

Can I recover if I was partly at fault in Maryland?

Maryland follows pure contributory negligence. If you are even slightly at fault (as little as 1%), you can be barred from recovering anything from the other driver.

What can I do if my insurer misses a deadline in Maryland?

Send a written follow-up citing the rule and asking for a decision by a specific date. If that fails, file a free complaint with the Maryland Insurance Administration; a pattern of missed deadlines can also support a bad-faith claim.

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