Car Insurance Stacking Law Benefits Motorists
March 6, 2018
Effective July 1, 2018, motorists in Maryland will have the option of purchasing enhanced underinsured motorist coverage (EUIM) in place of uninsured motorist coverage (UM). A new stacking law will benefit motorists by increasing the amount of money they are eligible to receive from the insurance company. If the motorist is injured in a wreck, this will help cover expenses associated with the accident, including medical bills, lost wages, and pain and suffering.
The law was created to expand coverage and protection for drivers who are injured by another motorist who is either uninsured or underinsured. Currently, Maryland is a gap theory state. This means that motorists in Maryland are required to purchase some form of UM insurance in addition to auto liability insurance, and that coverage will only pay the difference between the other motorist’s liability coverage and his or her UM coverage. For example, if the driver who caused the accident carried a $30,000 liability policy and you purchased $100,000 of UM coverage, the maximum amount you could recover from the at-fault driver would be $30,000, and you could only recover $70,000 from your own UM coverage.
Improved Car Insurance Laws
Under the new auto insurance law, victims will be able to recover the full amount of their own underinsured motorist cover (IUM), as well as the amount equal to the other driver’s policy limit. In other words, drivers in Maryland will be able to stack their own UM coverage on top of the at-fault driver’s liability coverage. Using the same example as above, EUIM coverage would allow you to recover the full $100,000 of your own coverage, plus the full $30,000 from the other driver’s liability coverage. This would result in an accident victim recovering $130,000, rather than $70,000.
Car accidents can be very costly, particularly when there are severe injuries requiring extensive medical care and time away from work. The stacked coverage is extremely beneficial to the injured party, particularly if the other driver has low liability insurance. The additional money afforded by the EUIM coverage can help pay for medical expenses, as well as lost wages and other expenses associated with the accident. A skilled and experienced car accident lawyer can answer any questions you might have about the new stacking law and how it may benefit you in the event of a serious car accident.
Baltimore Car Accident Lawyers at LeViness, Tolzman & Hamilton Advocate for Car Accident Victims
If you or someone you know is seriously injured in a car accident involving another driver who is underinsured or uninsured, it is in your best interest to contact the experienced and dedicated Baltimore car accident lawyers at LeViness, Tolzman & Hamilton as soon as possible. We will seek the maximum financial compensation that you are entitled to, both from your policy as well as that of the driver who caused the accident. We will continue to fight for you until justice has been served. To schedule a free, confidential consultation, call us today at 800-547-4LAW (4529) or contact us online.
Our offices are located in Baltimore, Columbia, Glen Burnie, and Towson, allowing us to represent car accident victims in Maryland, including those in Anne Arundel County, Baltimore County, Carroll County, Harford County, Howard County, Montgomery County, Maryland’s Western Counties, Prince George’s County, Queen Anne’s County, Southern Maryland, and the Eastern Shore, as well as the communities of Catonsville, Essex, Halethorpe, Middle River, Rosedale, Gwynn Oak, Brooklandville, Dundalk, Pikesville, Nottingham, Windsor Mill, Lutherville, Timonium, Sparrows Point, Ridgewood, and Elkridge.
