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Is Enhanced Underinsured Motorist Insurance Coverage Offered in Maryland?

Maryland has enacted new statutory provisions requiring insurance companies writing automobile business in this state to offer a new form of uninsured coverage called “enhanced underinsured” coverage. The additional offering will come into play for policies dated July 1, 2018 and after. The significant difference, other than the increased premiums, is that with the enhanced coverage

there is no set-off or reduction for amounts paid by the at-fault party's liability insurance

Under the former “straight” uninsured scheme, one had to have more uninsured coverage than the at-fault party’s liability coverage in order to get uninsured benefits. As the amount of the uninsured coverage available was reduced by the amount paid to exhaust the at-fault liability policy, if the two policies had the same limit, it was a wash. Not so with the new enhanced converge. Here, there is no reduction for the amount paid by the at-fault party’s insurance. So, a person with an enhanced underinsured policy limit identical to that of the at-fault party would still be able to recover from their own “enhanced” coverage with the same limits in addition to the amount they recover from at-fault driver’s policy. 

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