October 31, 2023

Maryland Car Accident Settlements: Everything you need to know

Car accidents in Maryland often lead to a complex web of physical, emotional, and legal challenges. This guide aims to shed light on the intricacies of car accident settlements in the state, helping victims navigate the process more confidently.

For more information on car accident settlements in Maryland, reach out to an accident attorney today!

Insight into the Legal Process 

Maryland operates under an "at-fault" system, meaning the party responsible for the accident bears the financial burden. This system dictates that the person or entity found at fault for the accident is also responsible for compensating the injured parties.

Filing a Claim with the At-fault Party's Insurer

This is the most common route. Once a claim is filed, the insurance company will investigate the accident, determine liability, and offer a settlement based on their findings.

Pursuing a Personal Lawsuit

If negotiations with the insurance company break down or if the offered settlement is unsatisfactory, victims can take the matter to court. This process involves filing a lawsuit against the at-fault party, presenting evidence, and potentially going to trial.

Uninsured/Underinsured Motorist Claims

In cases where the at-fault driver lacks sufficient insurance coverage, victims can file a claim with their own insurance company under their uninsured or underinsured motorist policy.

Average Car Accident Settlement Value

Tier 3$15,000 - $25,000
Tier 2$50,000 - $125,000
Tier 1$200,000 - $500,000

In the realm of personal injury settlements, the severity of injuries sustained by the victim plays a pivotal role in determining the compensation amount. The categorization into tiers helps in understanding the potential settlement range based on the nature of the injuries:

Tier 1 Injuries: These involve catastrophic injuries like traumatic brain injuries or spinal cord damage, where settlements are higher due to the profound and permanent impact on the victim's life, including ongoing care and loss of income.

Tier 2 Injuries: Involving serious injuries such as broken bones, Tier 2 settlements account for significant medical treatment, possible future surgeries, and a recovery period that affects work and daily life.

Tier 3 Injuries: This tier includes less severe, soft tissue injuries like sprains, where settlements are lower but aim to cover medical costs and any temporary discomfort or work interruption the victim experiences.

Factors Influencing Settlement Amounts 

When it comes to determining the settlement amount for car accidents in Maryland, the process is far from arbitrary. Several elements come into play, each carrying its own weight and significance:

Financial Losses

Direct costs such as medical expenses, property damage, and lost wages due to the accident. Medical expenses can range from emergency care immediately after the accident to prolonged treatments and therapies. Property damage encompasses not only vehicle repairs but also any personal items that might have been damaged during the collision.

Nature of Damages

Physical injuries often lead to higher settlements than mere property damage. This is because physical injuries can have long-term implications, requiring ongoing medical care, affecting the victim's ability to work, and impacting their overall quality of life.

Pain and Suffering

The emotional trauma and life disruption caused by the accident. This includes not only the immediate pain from injuries but also the long-term psychological effects, such as anxiety, depression, or post-traumatic stress, that can linger long after physical wounds have healed.

Insurance Policy Detail

The at-fault party's insurance coverage limits can cap the settlement amount. It's essential to understand these limits as they dictate the maximum amount one can claim. In cases where damages exceed these limits, victims might need to pursue additional avenues for compensation.

Degree of Fault

Maryland's contributory negligence rule can bar victims from compensation if they're even slightly at fault. This means that if a victim is found to be even 1% responsible for the accident, they may not receive any settlement, emphasizing the importance of thorough evidence collection and legal representation.

Tips on Navigating the Car Accident Settlement Landscape in Maryland 

The path to a fair car accident settlement in Maryland is often riddled with challenges. It's not just about knowing the facts of your case, but also about employing the right tactics at the right time. Successfully navigating this process demands a well-thought-out strategy. Here are some key considerations to keep in mind:

Document Everything

Maintain records of medical treatments, police reports, and any other relevant documents. Proper documentation serves as concrete evidence supporting your claim. This includes photographs of the accident scene, witness testimonies, and any communication with insurance companies. Keeping a diary detailing your recovery can also be beneficial, capturing the daily impact of your injuries.

Seek Legal Counsel

A seasoned personal injury attorney can be invaluable, offering guidance, handling negotiations, and ensuring fair compensation. They bring expertise in understanding the nuances of Maryland's laws, can help you avoid potential pitfalls, and will advocate on your behalf, especially when dealing with insurance companies that might try to minimize their payout.

Stay Informed

Understand Maryland's specific car accident laws to better navigate the settlement landscape. Being knowledgeable about the state's regulations, timelines, and legal procedures can empower you during the settlement process. This includes being aware of the statute of limitations, the state's contributory negligence rule, and any recent legal changes that might affect your claim.

Negotiate Wisely

Initial offers from insurance companies might be lower than what you deserve. Be prepared to negotiate. Remember, insurance adjusters often start with a lowball offer, expecting pushback. Don't be afraid to counter their offers with evidence-based arguments. If negotiations stall, your attorney can advise on the next best steps, which might include mediation or even taking the case to court.


Navigating the complexities of car accident settlements in Maryland can be a daunting task. From understanding the nuances of the state's legal system to effectively negotiating with insurance companies, victims face numerous challenges. However, with the right knowledge and resources, it's possible to secure a fair and just settlement. 

If you or a loved one has been involved in a car accident in Maryland and are seeking expert guidance, don't hesitate. Reach out to Shultz Legal. With their seasoned team of personal injury