The right car insurance coverage is crucial, especially if you get into an accident where the other driver is at fault but lacks adequate insurance. Uninsured motorist (UM) coverage protects you in such situations, including cases where the at-fault driver isn’t identified, such as hit-and-run accidents. Maryland law requires drivers to purchase UM coverage at minimum liability coverage limits of $30,000 per person, $60,000 per accident for bodily injury and $15,000 per accident for property damage, often referred to as 30/60/15.
The three UM coverage options
Here are the main options for UM coverage in Maryland:
- Option #1 allows you to purchase UM coverage equal to your liability coverage limit. This means if an uninsured or underinsured driver hits you, you have the same level of protection as you would for others if you were at fault. So, if your liability coverage limit is a $100,000 liability coverage limit, you can also have $100,000 in UM coverage. This option provides comprehensive protection, but it could cost more.
- Option #2 enables drivers to waive their UM coverage to less than their liability coverage limits, often to the state minimums. While this option can be cheaper, it offers less protection. For example, if you choose this option with minimum coverage, and the at-fault driver has no insurance, you would only receive $30,000 from your policy’s UM coverage. This option can leave you more exposed financially if you are involved in a serious accident.
- Option #3 is enhanced underinsured motorists (EUIM) coverage, which offers a higher level of protection. With EUIM, your insurer cannot offset your total claim by any amount you collect from the at-fault driver’s insurance. For instance, if you have a $100,000 EUIM limit and the at-fault driver has $30,000 coverage, you can claim up to $100,000 from your policy after collecting from the at-fault driver’s insurer. Although EUIM costs more, it provides better coverage for severe accidents.
Picking the right option
When selecting UM coverage, consider the number of vehicles and drivers in your household to ensure adequate protection. It’s essential to have enough coverage to protect all potential drivers and passengers.
Carriers may still try to deny or undervalue claims
Despite having the right coverage, insurance companies may still try to undervalue claims or resist paying a fair amount. It’s wise to consult an experienced and knowledgeable personal injury attorney to evaluate your case before accepting any settlement from an insurance company or the other party. The right lawyer can help ensure drivers receive the compensation they deserve.