Changes in Maryland Underinsured Motorist Coverage

EFFECTIVE JULY 1, 2018

Maryland to allow stacking of Underinsured Motorist Coverages (Enhanced Underinsured Motorist Coverage or “EUIM”)

CONTACT GRABO LAW, LLC today 301-938-7652 to make an appointment for your free consultation to learn more about how this change in Maryland Law may benefit you and your family.

This new stacking law (EUIM) may greatly increase the amount of money available to an injured person to cover damages such as medical bills, lost wages, pain and suffering as well as future damages caused by the negligence of others.

Let’s face it, when many people think about how much motor vehicle insurance coverage to purchase they do not consider what if my family and/or I am injured by another person in a car accident. More importantly, they do not consider what if the other person does not have enough insurance coverage to compensate us for medical bills, lost wages, pain and suffering. All too often, they think, I don’t need too much coverage because I’m a good driver, I won’t be in an accident, the state only requires a bare minimum or this is all I can afford. Underinsured Motorist coverage is mandatory and exists to protect driver’s and their families for this type of scenario. Thankfully, under this new stacking law, those who elect EUIM coverage when buying motor vehicle insurance coverage may be afforded additional protection over those who chose not to elect the EUIM coverage.

Maryland Insurance Code §19-509 generally governs Underinsured Motorist coverage and will be applied to those who do not elect EUIM coverage is based upon a “gap theory”. This means that the victim of a car crash will generally be limited to the amount of their Underinsured Motorist limits covering the gap between their UIM coverage and the at fault party’s insurance limits.

On July 1, 2018, Maryland Insurance Code §19-509.1., the new Enhanced Underinsured Motorist law will take effect. This new stacking law may allow the victims of a car accident to stack their Underinsured Motorist Coverage on top the tortfeasor or at fault party’s insurance coverage. This benefit will be offered for new policies and must be elected EUIM will be provided for new policies and EUIM must be elected for over UIM. If EUIM is not elected for, an insurance company may happily waive this benefit.

CONTACT GRABO LAW, LLC today 301-938-7652 to make an appointment for your free consultation to learn more about how this change in Maryland Law may benefit you and your family.