Enhanced Underinsured Coverge

By James A. Cleaver, Esq.

You’ve just been in a serious motor vehicle crash. Though it is no fault of your own, your car is a total loss and you’ve been seriously injured. Your future is filled with extensive medical treatment and your doctor has taken you out of work. To top it off you’ve just discovered the other driver has “cut rate” insurance. What do you do?

“Underinsured” motorist coverage is a claim under your own automobile insurance policy for benefits over and above the limits of the other driver’s coverage. There’s one catch: it’s only available if your policy limits exceed the liability limits of the at fault driver. Otherwise, stated, your insurance company gets a credit for the amount of coverage on the other driver’s insurance policy. For years, Maryland prohibited “stacking”, adding the limits of you underinsured coverage to the other driver’s liability coverage.

Effective July 1, 2018, you can purchase what is called “enhanced underinsured motorist coverage”. The effect is to raise your underinsured benefits up to the amount of your liability policy. Otherwise stated, your insurance cannot subtract the amount of the other driver’s liability limits from your underinsured coverage.

Why is this important? In my view, because of the internet, more and more consumers are going to the internet to shop for insurance. They often buy the cheapest coverage. They do not sit down with an experienced lawyer or insurance agent and take time to ask, “what happens if I cannot work, or my health insurance pays only a portion of the medical bills”. This can and often does result in a serious loss of benefits to innocent drivers or passengers seriously injured in motor vehicle accidents.

The Attorneys at Alexander & Cleaver can advise you on all the new Maryland Laws that have just become effective. Call for an appointment to bring in your auto liability insurance policy for a no-charge legal consultation and get some up to the minute advice. Remember A&C is on duty 24/7 and if you, a family member or friend is in an accident call our office at 1-301-292-3300!