Last week, we discussed a new Maryland law that required insurance companies to offer Enhanced Underinsured Motorist (EUIM) protection with all new individual insurance policies issued after July 1, 2018. Under the new EUIM framework, an accident victim is able to obtain the full value of their insurance policy without an offset for any compensation provided by the at-fault party’s policy.
This new law represents one form of insurance stacking. Insurance stacking is a term used to describe an accident victim’s ability to recover under multiple insurance policies based on a single accident. Some types of insurance stacking are permitted. For example, under the new EUIM law. However, other accident victims may be prevented from stacking in other situations.
In the event that an accident victim’s damages are greater than the limit under their insurance policy, the accident victim may be required to cover some of their expenses out-of-pocket. However, if an accident victim is covered under multiple insurance policies, they may wish to file a claim and recover under each policy. Thus, by adding the recovery amounts between multiple policies, an accident victim is able to recover a greater amount.