Are You Adequately Insured Against Uninsured or Underinsured Drivers?

Unfortunately, it is not unusual for BDBF attorneys to work with injured clients who cannot obtain a full and fair recovery against an at-fault driver. Often this is because the driver who hit them had no insurance or was underinsured. It adds insult to (often literal) injury to an innocent driver who is badly hurt and must bear the burden of medical bills and lost wages.

How Can You Protect Yourself From This Situation?

One of the best ways to protect yourself is through higher limits of “uninsured” or “underinsured coverage”, often known as “UM Coverage”. This coverage is through your own policy and takes effect when a driver who hits you is uninsured or does not have enough coverage to cover your loss. Your policy limits must be higher than the policy limits of the at-fault driver for UM Coverage to apply.

How Does UM Coverage Work?

Let us assume you are an innocent driver and you suffer $100,000 in losses from an auto accident. Unfortunately, the at-fault driver only carries $30,000 in their policy limits. Ordinarily, the most you could recover is $30,000. Your loss would not be made whole, despite the fact that the other driver is at-fault.

However, assume you carry $100,000 in UM coverage. You could recover $30,000 in policy-limits from the at-fault driver plus up to $70,000 in coverage on your UM policy. Despite the fact that the at-fault driver was underinsured, you would be made whole.

What Does “Enhanced” UM Coverage Mean?

Maryland residents may hear or see the word “enhanced” describe uninsured or underinsured coverage when they purchase or renew their auto insurance policy. Insurance providers are now required to offer “enhanced” UM coverage to Maryland residents.

If you choose to purchase the “enhanced” UM coverage, your UM policy limits would combine (or “stack”) with the at-fault driver’s policy limits. Using the example above, you would have up to $130,000 in coverage if you purchased an “enhanced” UM policy.

What Other Forms of Insurance Might Protect Me?

UM coverage (or “enhanced” UM coverage) might not be the only way to protect you from an uninsured or underinsured motorist. However, adding more UM coverage may be expensive. A policy of “umbrella” insurance may be less expensive than UM coverage and offer higher policy limits.

If you have been injured in an automobile accident or have any questions about adequate insurance coverage, please contact Dan Shaivitz at (301) 656-1177 or dshaivitz@bulmandunie.com. We’re happy to answer your questions and help you protect yourself and your loved ones.