If you have been involved in a Maryland car accident, the personal injury attorneys at Chaikin, Sherman, Cammarata & Siegel, P.C. are here to support you. A motor vehicle accident can be a scary event, let alone when that accident is with an uninsured or underinsured driver. Maryland recently enacted some changes to its enhanced underinsured motorist coverage that can affect an injured party’s ability to recover in the aftermath of an accident. Our car accident attorneys understand the nuances of the underinsured motorist coverage requirements in Maryland and can provide you support in the aftermath of a motor vehicle accident when the other driver does not have insurance. Contact us for a free consultation today to learn more about your options through an underinsured motorist claim.
How Maryland’s Enhanced Underinsured Motorist Coverage Affects Maryland Drivers
Maryland’s Enhanced Underinsured Motorist (EUIM) coverage offers substantial benefits to drivers by providing additional financial protection in the event of a motor vehicle accident with an underinsured driver. This type of coverage ensures that drivers can claim compensation up to the limits of their insurance policy, rather than being limited to the often lower liability limits of the at-fault driver’s policy. As a result, Maryland drivers opting for EUIM coverage are less likely to experience significant out-of-pocket expenses for medical bills, property damage, and other associated costs when dealing with accidents involving underinsured motorists. Additionally, this enhanced coverage provides peace of mind and financial security, making it an attractive option for many policyholders in the state.
Maryland Changes Enhanced Underinsured Motorist Coverage from Opt-in to Opt-out
In 2024, Maryland changed the state’s auto insurance landscape by transitioning EUIM coverage from an opt-in to an opt-out system. Maryland’s new law requires insurance providers to automatically include EUIM coverage in all new and renewing policies unless policyholders explicitly decline it. The shift aims to improve financial protection for drivers by increasing the likelihood that more individuals will hold this vital coverage, thus reducing potential financial burdens following accidents involving underinsured motorists.
This change in Maryland law underscores the state’s commitment to safeguarding its residents on the road, ensuring a more comprehensive safety net, and promoting greater awareness of underinsured motorist risks. By making EUIM coverage the default, Maryland expands access and encourages drivers to consider their insurance needs more thoughtfully.
Impact of House Bill 128 on Insurance Coverage in Maryland
House Bill 128 significantly altered the landscape of insurance coverage in Maryland by paving the way for mandatory offering of EUIM coverage to policyholders. Passed by the Maryland General Assembly and enacted into law, this bill mandates that insurance companies present EUIM coverage as an option to all new and renewing auto insurance customers.
The primary change introduced by this legislation is that it allows insured individuals to fully utilize their insurance policy limits above the at-fault driver’s liability. Previously, drivers were constrained by the underinsured motorist’s policy limits, potentially leaving them with substantial out-of-pocket costs. House Bill 128 marks a pivotal step in expanding financial protection for Maryland drivers, encouraging them to have more comprehensive coverage against the unpredictable situations presented by underinsured motorists.
Maryland Uninsured Motorist Coverage Laws
Maryland requires that every automobile insurance policy sold in the state includes uninsured motorist coverage, which the Maryland Insurance Code mandates. This coverage ensures that drivers are protected if they are involved in an accident with a motorist who does not have liability insurance. The uninsured motorist coverage must be equivalent to the liability coverage chosen by the policyholder, with a minimum requirement that aligns with the state’s liability insurance limits. As of 2024, these minimum limits are set at $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage. Maryland also allows drivers to purchase enhanced coverage options that provide additional protection in cases involving uninsured and underinsured motorists.
How Underinsured Motorist Protection Works
Underinsured motorist (UIM) coverage acts as a critical safety net for drivers involved in accidents with at-fault drivers whose insurance coverage is insufficient to cover all incurred damages. Typically, after an accident, the underinsured driver’s insurance is required to pay up to the limits of their policy to cover expenses such as medical bills and property damage. However, when these limits are insufficient, UIM coverage kicks in to bridge the gap up to the limits of the injured party’s policy.
For instance, if an accident results in $50,000 worth of damages but the at-fault driver only has $25,000 in liability coverage, the UIM protection will cover the remaining $25,000, assuming the policyholder’s UIM coverage is sufficient. It is worth noting that UIM does not overlap with the at-fault driver’s policy limits; instead, it covers the shortfall, offering policyholders a fuller financial recovery without significant out-of-pocket expenses. By ensuring that policyholders can access their own coverage limits, UIM coverage provides peace of mind and financial stability in the aftermath of accidents involving inadequately insured drivers.
Understanding Maryland Insurance Coverage Requirements Generally
Maryland insurance coverage requirements are designed to ensure that all drivers share a basic level of financial responsibility on the roads, thereby offering protection to everyone involved in vehicular travel. At a foundational level, the state mandates all vehicle owners to carry minimum liability insurance, which covers damages for which they are legally responsible. This includes bodily injury and property damage to others arising from an accident.
Maryland’s liability coverage minimums, as of 2024, are $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $15,000 for property damage. Beyond liability coverage, Maryland also requires uninsured motorist coverage, which equates to the liability limits chosen by the policyholder, providing additional protection in the event of an accident with an uninsured driver. These requirements highlight the state’s commitment to protecting drivers and occupants, ensuring the well-being of its residents, and mitigating financial risks associated with car accidents. Maryland’s insurance laws encourage drivers to thoughtfully evaluate and, if necessary, expand their coverage to incorporate enhanced options such as EUIM coverage, further safeguarding against unexpected financial burdens.
Chaikin, Sherman, Cammarata & Siegel, P.C. Understand the Implications of EUIM Coverage on Your Ability to Recover
If you have been injured in a Maryland car accident and seek compensation from an uninsured or underinsured driver, the experienced car accident attorneys at Chaikin, Sherman, Cammarata & Siegel, P.C. are here to help. Contact us for a free consultation to learn more about your options.
