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Enhanced Underinsurance Motor Vehicle Coverage May Be Coming to Maryland

July 13, 2017 By Erin H. Cancienne

Underinsured motorist coverage provides protection when you’re in an accident with an at-fault driver whose liability limits are too low to cover the damage or medical expenses.  When underinsurance occurs, then your policy would reimburse you up until the underinsurance policy limits.  Traditional underinsurance coverage on a motor vehicle is reduced by the insurance limits of the at-fault driver.  For example, if your insurance policy has a $100,000 underinsurance limit, and the person that hit your car has $30,000 policy limits, then the most you could recover on your own policy is $70,000.

However, the Maryland General Assembly has enacted new legislation (House Bill 5) to allow for “enhanced” underinsurance coverage.  Under the enhanced coverage, if your insurance policy has a $100,000 underinsurance limit, then the most you could recover under your own policy is $100,000 without being reduced by the amount of the other vehicle’s policy.  You would still have to show that the other driver was underinsured, but your own limits would not be reduced.  This will make a significant difference in your available recovery depending on the size of both policies. 

All policies sold in Maryland would have to offer this coverage by July 1, 2018.  Please check back at for updates regarding this bill and its effect on your insurance