Maryland law requires that all motorists obtain a base level of car insurance in order to legally drive on the state’s public roads. Since 2011, Maryland drivers have been required to obtain underinsured or uninsured motorist (UIM) protection. This type of insurance compensates a motorist when an at-fault driver either has no insurance or does not have sufficient insurance to cover the injuries of a Maryland car accident victim.
Recently, Maryland legislature passed a new law requiring insurance companies to offer a new version of UIM insurance. Under the old UIM insurance policies, a motorist’s total recovery would be reduced by whatever insurance the at-fault driver had. For example, suppose a motorist was involved in a collision caused by another driver who had an insurance policy with a policy maximum of $50,000. If the injury victim’s policy max was $200,000, the injured motorist would only be able to obtain $150,000 from their own insurance company despite the fact that their policy limit is $200,000. This is because the old UIM statute counted the compensation from the at-fault party’s insurance policy toward the policy maximum of the injured motorist.
Under the new Enhanced Underinsured Motorist Coverage (EUIM), Maryland motorists will enjoy greater protection. Simply, an EUIM policy will not count the compensation received from an at-fault driver’s insurance company toward the policy maximum of the injured party. So, in the above example, the injured motorist would be able to recover a maximum of $50,000 from the at-fault motorist’s insurance company, and another $200,000 from their own insurance company.