Maryland Begins to Require That Insurance Companies Offer Enhanced Underinsured Motorist Coverage

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.

There are a few important things to keep in mind regarding the new law, which are outlined on an official fact sheet. Most importantly, is that the new law only applies to new policies that are started after July 1, 2018, and not renewals. So, motorist must call their insurance companies and request EUIM coverage if they have an existing policy. Additionally, the new EUIM policies will apply to situations in which the at-fault driver has no insurance as well as to those where the at-fault driver has insufficient insurance. Finally, EUIM policies will apply to motorcycle policies in addition to passenger-vehicle policies; however, at this time the new EUIM coverage will not apply to commercial policies.

Have You Been Involved in a Maryland Car Accident?

If you or a loved one has recently been injured in a Maryland car accident you may be entitled to monetary compensation. While it is important that Maryland personal injury attorneys command an in-depth knowledge of all relevant legal principles, it is equally important that attorneys understand the insurance business and what motivates insurance companies. At Lebowitz & Mzhen, LLC we have been handling Maryland car accident claims for decades, and know the ins and outs of Maryland insurance law. We have a successful track record among thousands of cases, and look forward to speaking with you about your case. To learn more, call 410-654-3600 to schedule a free consultation to discuss your case with a dedicated Maryland personal injury attorney.

More Blog Posts:

City May Be Liable for Injuries Following Accident Caused by Fallen Stop Sign, Maryland Car Accident Attorney Blog, published September 4, 2018.

Court Upholds Accident Victim’s Preferred Venue in Recent UIM Case, Maryland Car Accident Attorney Blog, published August 28, 2018.


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