Uninsured Motorist Coverage & Underinsured Motorist Coverage
The first thing to know is that, while you would sue an uninsured driver who is also the at-fault driver, any settlement or judgment payment would be through the Uninsured/Underinsured (UM/UIM) provision of your own insurance policy.
Maryland law requires that insurance companies provide UM/UIM coverage (Uninsured Motorist Coverage/Underinsured Motorist Coverage) which ensures that you are protected in exactly these situations.
Uninsured Driver vs. Underinsured Driver
The first thing to know is that, while you would sue an uninsured driver who is also the at-fault driver, any settlement or judgment payment would be through the Uninsured/Underinsured (UM/UIM) provision of your own insurance policy.
Maryland law requires that insurance companies provide UM/UIM coverage (Uninsured Motorist Coverage/Underinsured Motorist Coverage) which ensures that you are protected in exactly these situations.
Uninsured Driver
An uninsured driver is someone driving without any car insurance coverage. While Maryland law prohibits driving without insurance, it is an unfortunate reality that many people still do.
And when they cause a car accident, the victims are left wondering how they will be able to recover damages for their bodily injury, medical bills, and pain and suffering.
Underinsured Driver
By contrast, an underinsured driver is someone who, while having car insurance, has insufficient coverage under that policy to fully and completely compensate the victim for their injuries. Pursuant to Maryland Code Annotated, Insurance Article 19-504 and Transportation Article 17-103, the minimum liability insurance coverage required in Maryland is $30,000/$60,000.
In normal terms, this means $30,000 per claimant and $60,000 per claim if there were multiple people injured in the same accident.
So if someone is driving around with a Maryland minimum coverage under their policy and causes a car accident that results in more than $30,000 of injuries to a victim, that at-fault driver will be deemed to be underinsured.
Uninsured Motorist Coverage
Maryland Code Annotated, Insurance Article Section 19-509 establishes the requirements for uninsured motorist coverage in Maryland and the rules that the insurance companies are required to follow in providing such policies available to their policy holders.
It also explains who is eligible to pursue an uninsured motorist claim and who is not, depending on the facts of the situation. It is also important to note that insurance companies in Maryland are required to offer uninsured motorist coverage to registered car owners and drivers.
While uninsured drivers are breaking the law, that does not help you obtain a recovery except through your own insurance coverage through your insurance company.
Underinsured Motorist Coverage
The same statutory section in Maryland law for uninsured motorist coverage – Maryland Code Annotated, Insurance Article Section 19-509 – also applies to underinsured motorist coverage in Maryland and follows the same general principle.
If the driver who caused your bodily injury or other personal injury (as allowed by the law) does not have enough car insurance liability coverage, he or she is deemed to be underinsured and your own underinsured coverage will kick in to cover any other damages you have up to your coverage limit.
The key distinction between uninsured motorist coverage and underinsured motorist coverage is that in the first instance, your insurance company is covering all of your damages while in the second, they are only obligated or required to cover an amount above the coverage of the tortfeasor.