UNDERSTANDING UNINSURED MOTORIST COVERAGE

Have you ever stopped to think what would happen if you or a loved one was injured in an automobile accident caused by another driver with no insurance?

There are many reasons why the other driver may have no insurance coverage or the insurance company refuses to provide coverage. The other driver may choose to intentionally violate the law and drive without any insurance. He may have been recently canceled for non-payment.

The driver of the vehicle that causes your accident may be an "excluded" driver. For example insurance companies often exclude those convicted of drunk driving from coverage while at the same time continuing to insure others within the household. Often times, excluded drivers continue to operate vehicles for which they have no insurance coverage.

The vehicle involved in the accident may be stolen. Or the insurance companies may have a permissive use defense to providing coverage. The driver may know the owner, even live under the same roof, but not have permission, either express or implied, to use the vehicle.

The other driver may be unidentified. He may cause an accident but speed away or run away on foot before being identified. Finally the other driver may have insurance but the company may go bankrupt and thus be unable to pay your damages.

Fortunately if you are ever involved in a collision with any of the above drivers you have a remedy in uninsured motorist insurance. Uninsured motorist insurance provides protection for innocent victims of those who have no insurance. It is mandatory coverage, meaning that you cannot purchase automobile insurance in Maryland without obtaining uninsured motorist coverage.

But what if the other driver has insurance, just not enough to pay your reasonable damages?

By law uninsured coverage in Maryland can be used to make an underinsured claim. If your uninsured insurance is more than the liability insurance of the at fault driver or drivers you are permitted to make an underinsured claim for up to the difference between the two policies.

The central fact in either an uninsured or underinsured claim is you can determine the limits of your recovery. By choosing to obtain uninsured coverage in excess of the legally required minimum of $20,000 per person / $40,000 per accident you can protect yourself and your loved ones against financial disaster in the event of a serious motor vehicle accident.

Be careful before you select the different coverages and the limits of your insurance. Consider what you have to protect and how you will get along if you are disabled for any appreciable period of time. Consult with your insurance agent or an attorney. As with other matters in life, careful planning now will save you much aggravation later.