Insurance Issues

Filing an Uninsured Motorist Claim After a Maryland Car Accident

February 25, 2020 | Lebowitz & Mzhen

Maryland regulates insurance in the state for all Maryland drivers. When a Maryland car accident occurs, compensation is often issued by the insurance companies through the insureds’ insurance policies. If a wrongdoer is not insured, or is underinsured, uninsured motorist coverage normally kicks in. Uninsured motorist coverage covers damages to a victim that are less than the amount of coverage provided under the statute.

Maryland’s uninsured motorist statute was enacted in 1972. The statute was meant to provide protection for individuals injured by uninsured motorists and to allow more injured victims to recover compensation. In 1975, the State made uninsured motorist coverage mandatory for all motor vehicle liability insurers. The term uninsured also now encompasses underinsured vehicles. There is a minimum coverage required by the statute. An insured individual can also buy additional uninsured motorist coverage.

To file an uninsured motorist coverage claim in Maryland, an insured must show proof of being insured, that he is entitled to recover from an uninsured motor vehicle’s owner or operator, that he sustained injuries or property damages, and that the injuries resulted from the uninsured driver’s use, ownership, or maintenance of the motor vehicle.

Uninsured/Underinsured Motorist Coverage after a Maryland Car Accident

February 19, 2020 | Lebowitz & Mzhen

After a car accident, injured motorists, passengers, and bystanders are often left with significant property damage, physical wounds, and psychological trauma. The aftermath of these accidents can leave injury victims and their families with substantial financial obligations. Maryland car accident victims often rely on the at-fault party or their insurance company to cover the victim’s losses. However, in many situations, the at-fault party may deny liability and refuse to pay, or their insurance coverage may not adequately cover the victim’s losses. In these cases, car accident victims may be able to recover under their uninsured/underinsured motorist (UM) coverage.

In Maryland, UM coverage provides policyholders with protection if they are involved in an accident with an at-fault driver whose insurance coverage does not sufficiently cover the victim’s injuries. UM coverage can also cover injury victims in instances where the at-fault driver leaves the scene of the accident without providing identifying information.

In addition to liability insurance, and personal injury protection, Maryland law requires that motorists carry UM coverage that is at least $30,000 per person and $60,000 per incident, or a $75,000 combined limit. However, this amount may be higher because UM coverage must match the amount of standard liability coverage a motorist carries. Moreover, if a policyholder purchases higher levels of liability coverage, their UM coverage must increase to the same amount, unless the insured specifically chooses less UM protection. Even if the policyholder chooses UM coverage less than their liability coverage, the amount must still meet minimum requirements.

What To Do When Insurance Companies Act in Bad Faith Following a Maryland Car Accident

January 21, 2020 | Lebowitz & Mzhen

Maryland law requires every driver to purchase auto insurance, which ideally should cover them for damages caused in an accident. But anyone who has dealt with an insurance company in the wake of a Maryland car accident knows that insurers are notoriously difficult to work with. Sometimes, insurance companies will deny worthy claims against them, in the hopes that accident victims will lack the resources and knowledge needed to compel them to pay, and will instead give up.

For example, if Driver A gets into an accident with Driver B, and Driver B was at fault, Driver A may be able to recover for his medical expenses from Driver B’s insurance company. However, Driver B’s insurance company has an interest in paying as little as possible. In situations such as this, the insurance company may deny the claim and refuse to pay, sometimes without even giving a reason. Driver B may not be able to pay the claims on his own, and Driver A is then left with outstanding medical bills.

Driver A and Driver B may both feel frustrated in this case—they purchased auto insurance and followed the rules, and yet they still were not covered when an accident happened. In these cases, however, a lesser-known legal doctrine may come into play. When insurance companies deny worthy claims, they may be acting in “bad faith.” Acting in bad faith means they are violating their legal duty to act in “good faith” towards their clients, denying meritorious claims or otherwise operating in a deceitful manner to try and limit their liability. Importantly, both Driver A and Driver B may have a claim of bad faith against the insurance company. If they can prove bad faith, they may be entitled to the actual damages suffered by the accident victim and monetary compensation for the cost of litigation, such as attorney’s fees.

Personal Injury Claims and Insurance Disputes Following Maryland Car Accidents

November 18, 2019 | Lebowitz & Mzhen

The Maryland Motor Vehicle Administration (MVA) reports that thousands of people are hurt or killed in Maryland car accidents every year. Crash report statistics have shown there has been a rise in Maryland car accidents every year since 2012. These incidents range from minor to severe, and Maryland car accident victims often suffer significant financial repercussions as a result of these accidents. Many accident victims do not realize that their insurance companies may not cover the extent of damages that they sustained. In these situations, injury victims may need to file a dispute with their insurance company to recover fully for their losses. In some cases, a Maryland personal injury lawsuit against the at-fault party may be necessary.

Injury victims are often surprised to discover that their insurance company is taking an adversarial role when the policyholder attempts to collect on a claim. Many times, insurance companies will go to great lengths to dispute a claim, deny coverage, and escape making a payment.

For example, recently, a state appellate court issued a ruling in a lawsuit stemming from a claim dispute between a policyholder and her insurance company. In that case, a woman suffered injuries while she was exercising at a mobile gym. The woman filed and settled a negligence lawsuit against the gym’s owner and the personal trainer. The gym was run out of the back of a pickup truck, so she filed a car insurance claim with her provider to recover her remaining damages. Her insurance company disputed coverage, arguing that her uninsured/underinsured coverage did not extend to motor vehicles such as a mobile gym. The insurance company cited specific provisions in her policy that limited the insurance company’s obligation to pay a claim. Ultimately, the appellate court ruled in the insurance company’s favor finding that the coverage did not extend to motor vehicles that are “located for use as a premises,” such as a mobile gym.

Are Family Members Covered Under a Maryland Insurance Policy?

November 12, 2019 | Lebowitz & Mzhen

Those who have been involved in a serious Maryland car accident may have sustained injury, property damage, and missed time away from work. If the other driver who caused the accident has insurance, the accident victim can file a claim under that driver’s policy. However, if the at-fault driver either does not have insurance, or their insurance coverage is insufficient to cover the expenses incurred by the accident victim, the accident victim may have to look elsewhere to obtain full compensation.

Most commonly, in these situations, an injured motorist will look to their own insurance policy. Under Maryland law, all insurance policies must by default contain coverage for accidents involving underinsured or uninsured drivers. It is only if the insurance company obtains a written request by the insured to waive underinsured/uninsured motorist (UIM) protection that an insurance company can issue a policy without this coverage. Needless to say, UIM coverage can be critical to an accident victim obtaining a full and fair settlement. Unfortunately, issues frequently arise when dealing with UIM policies. One issue that comes up often in Maryland UIM insurance claims is whether the person making the claim was covered under the policy.

Maryland insurance policies are contracts, and are enforced through state contract law. In exchange for a monthly premium payable by the insured, an insurance company agrees to provide certain coverage, as outlined in the policy. Among other things, all insurance policies must contain the coverage amounts and state who the coverage applies to. Often, policies will contain “exclusions” which outline specific circumstances in which coverage will not apply.

Ambiguous Terms in Maryland Insurance Policies May Reduce Coverage or Recovery

November 5, 2019 | Lebowitz & Mzhen

When accidents happen and people are injured, many individuals rely on their insurance policies to help them cover the costs. For instance, homeowner’s insurance policies can protect individuals if something that they own hurts someone else or damages their property. Maryland law allows the injured party to sue the at-fault party in court to recover monetary compensation, and insurance can help the at-fault party cover all or part of the award. However, some insurance companies may try to escape liability for certain types of accidents, relying on vague or ambiguous language in the policy’s contract.

Take a recent state appellate case, for example. According to the court’s written opinion, the plaintiff brought suit when she was injured by the defendant’s Ford truck. The truck had been parked on an incline on the driveway when the plaintiff, examining it, pulled the emergency brake. The truck subsequently took off and went down the driveway, rolling over the plaintiff’s ankles and causing her multiple injuries, including several fractures and a knee effusion. The plaintiff then filed suit against the defendant, alleging negligence.

Typically, in situations like this, a defendant with homeowner’s insurance would receive assistance from their insurance company. However, the defendant’s insurer filed a complaint for a declaratory judgment to determine whether or not it had to cover the incident. The insurance company argued that they did not provide coverage for claims arising out of the “use” of a motor vehicle, and thus were not obliged to cover the defendant here. Ultimately, the question came down to what the ambiguous term “use of a motor vehicle” meant, since there was no further definition in the policy contract.

How Does Insurance Stacking Impact a Maryland Car Accident Victim’s Recovery?

October 28, 2019 | Lebowitz & Mzhen

Understanding insurance coverage is a crucial part of any Maryland car accident case. After an accident, many unfamiliar terms may come up, potentially confusing an accident victim. Insurance stacking refers to a coverage option that some states allow policyholders to obtain to protect themselves if they are in a car accident with an under or uninsured motorist (UIM). Stacking enables policyholders to make claims under two policies or make two claims from different vehicles under the same policy. To obtain stacked insurance coverage, the policyholder must live in a state that allows this type of coverage.

State laws vary on whether policyholders are permitted to stack insurance policies. For example, Maryland does not permit policyholders to stack with multiple policies or within one policy if the language is clear and unambiguous. Whereas, Virginia allows drivers to stack policies unless there is clear and unambiguous language prohibiting stacking. Additionally, policyholders who wish to get this coverage must have UIM coverage on two cars under one policy or two separate policies on two vehicles. This coverage allows motorists to increase their bodily injury coverage if they are involved in an accident with a UIM.

States that allow stacking remove some unfair and burdensome barriers that motorists face when they are involved with a negligent uninsured driver. For example, a state appellate court recently issued an opinion in a case stemming from a car accident involving an underinsured driver. According to the court’s opinion, the plaintiff purchased a car insurance policy for two of her vehicles. She initially waived her right to stack her UIM coverage but then increased her coverage and was not presented with the same waiver at that time. Several years later, she was involved in an accident with an underinsured driver, and the insurance company attempted to limit her coverage and claimed that she waived stacking when she increased her coverage. The appellate court found that it was the insurance company’s responsibility to provide her with a new waiver; otherwise, it could not be said that the plaintiff waived her right to the coverage.

The Difficulties of Dealing with Insurance Companies after a Maryland Car Accident

October 22, 2019 | Lebowitz & Mzhen

When someone is involved in a Maryland car accident, they have the right to file a claim against any party they believe to be at fault for the accident. Typically, these personal injury claims are made against other motorists. However, when the named defendant has an auto insurance policy – as all Maryland motorists are required to have – the insurance company steps into the shoes of the at-fault motorist to defend against the accident victim’s claim. Thus, in most Maryland car accident cases, the plaintiff is actually going up against an insurance company, rather than the at-fault driver.

Unfortunately, it can be challenging for accident victims to work with insurance companies. This difficulty is illustrated in a recent opinion released by a state appellate court. According to the court’s opinion, the plaintiff was killed in a car accident after he was involved in a verbal dispute with the defendant outside of a bar. Evidently, as the plaintiff was leaving the bar, the defendant ran him over, killing him. The defendant was charged with voluntary manslaughter.

The plaintiff’s family filed a wrongful death claim against the defendant, who was insured through the defendant insurance company. The policy limit was $20,000 for compulsory insurance and $480,000 in optional insurance. The insurance company paid the $20,000 but argued that the optional insurance coverage did not apply because the defendant’s actions were intentional, and intentional conduct was not covered under the policy.

When Can a Maryland Car Accident Victim Recover From Multiple Sources?

October 7, 2019 | Lebowitz & Mzhen

In the aftermath of a Maryland car accident, a victim may have multiple sources from which to recover financially. This compensation can help pay for medical bills and other costs incurred as a result of the injuries. For instance, a plaintiff may be eligible for some money from their insurance company. However, money received from an insurance company may affect a plaintiff’s potential civil suit against the wrongdoer, because personal injury laws typically try to avoid allowing a plaintiff from being “unjustly enriched” by obtaining more compensation than needed for their injuries.

Take a recent Virginia case, for example. The Supreme Court of Virginia, in a recent written opinion, held that a Virginia car accident victim could receive monetary compensation from both her insurance company and the defendant responsible for the accident.

According to the court’s opinion, the plaintiff was driving down the road when the defendant pulled out of her driveway and struck the plaintiff’s vehicle. The plaintiff suffered significant injuries as a result of the accident and had to undergo multiple extensive surgeries. Accordingly, the plaintiff filed suit to seek compensation for her injuries.

The Availability of Uninsured & Underinsured Motorist Benefits Following a Maryland Car Accident

June 26, 2019 | Lebowitz & Mzhen

When someone is killed in a Maryland car accident, their loved ones can pursue a wrongful death claim against the at-fault party. Due to the tragic nature of Maryland wrongful death cases, they can result in significant damages awards. Often, the damages awards are much greater than any single insurance policy. Thus, wrongful death litigants will generally try to recover under as many insurance policies as are available. This includes the accident victim’s own policy, under the policy’s uninsured/underinsured (UIM) provision.

Recently, a state appellate court issued an opinion discussing some of the issues that can come up when pursuing claims under multiple insurance policies. In that case, the driver of a vehicle lost control and crashed, causing the passenger’s death. The passenger’s mother, the plaintiff, filed a personal injury claim against the driver and settled for the full value of the insurance policy. However, because the damages the plaintiff suffered as a result of her daughter’s death exceeded the amount available under the driver’s policy, she also filed claims under three insurance policies she held.

The defendant insurance company provided coverage under one of the policies, but denied coverage under the other two. The plaintiff filed a breach-of-contract action against the defendant, asking the court to compel the defendant to provide coverage under all three policies. The lower court entered summary judgment in favor of the insurance company, but on appeal, that decision was reversed. The insurance company appealed to the state’s high court.