Maryland Consumers Can Purchase Enhanced Underinsurance Coverage

We all maintain automobile insurance to protect our loved ones against the possibility of catastrophic injury caused by a careless driver. In Maryland, the minimal amount of liability insurance that may be purchased is $30,000 for a single injury and $60,000 for all injuries from a single collision. Given the cost of health care, this is a nominal amount. It is easy to imagine that even a moderate motor vehicle collision can lead to expenses exceeding $30,000 or $60,000. This is where uninsured or underinsured motorist coverage comes in into play.

When considering how much insurance to have, keep in mind that a serious motor vehicle collision may lead to medical bills and/or lost wages in the tens to hundreds of thousands of dollars. To properly protect your family, it is important to have adequate liability coverage for these circumstances. Of course, like anything else, with respect to vehicular insurance, you get what you pay for.

A new law enacted by the Maryland General Assembly took effect on July 1, 2018. This change in the law requires insurance companies to offer consumers the option of “enhanced underinsurance motorist coverage.” This change in the law allows for the “stacking” of policies.

Prior to this change in the law, a person injured by an uninsured or underinsured driver was entitled to the difference between the underinsured motorist coverage and his or her own coverage. For example, if an injured motorist carried $100,000 in underinsured coverage and the careless driver who struck her had minimal liability limits of $30,000, that $30,000 would first be paid to the injured party. Then the injured party would be entitled to the difference, $70,000, bringing their total recoverable amount to $100,000. This is the total amount, even if her damages exceeded that $100,000.

With the new statute, the injured driver has the option to elect enhanced underinsured motorist coverage. In such event, he or she would get the sum of the two policies. Stacked together, these policies equal $130,000, thereby more completely compensating the individual for the losses and allowing him or her to recover the full amount of the underinsurance coverage.

The cost for this added coverage may be negligible. I have four drivers on my policy and to have enhanced coverage for all four will be an added premium of $11 per month. That’s $11 for potentially hundreds of thousands of dollars of additional coverage if a family member or I am injured by an underinsured driver.

When a person is injured because of the careless actions of a motorist, the injured party has the right to seek fair compensation for his or her losses. This includes seeking benefits under your own insurance policy, if the at-fault driver has little or no insurance. If you have questions about these and related topics, you should consult with an attorney who is familiar with this area of the law and who will assist you in making informed decisions. If you need further information regarding this subject, contact me at the Law Office of David V. Diggs, LLC, located at 8684 Veterans Highway, Suite 204, in Millersville. My phone number is 410-244-1189 and my email is david@diggslaw.com.