Articles Posted in Uninsured Motorist

In Maryland, it is essential for drivers to purchase a specific type of automobile insurance called “Uninsured/Underinsured Motorist” coverage (UIM coverage). This coverage protects you if you are hurt in a Maryland car accident caused by someone who does not have insurance or does not have enough insurance to cover the resulting damages. For example, if Driver A is hit by Driver B, and incurs medical expenses of 100,000, they will likely seek to recover the $100,000 from Driver B. But if Driver B doesn’t have insurance, or only has enough insurance to cover $25,000, this may leave Driver A thousands of dollars in debt from an accident they did not cause. This tragic scenario can be avoided, however, if Driver A has UIM coverage.

UIM insurance is not just for individuals—companies can purchase it for company vehicles and employees. Sometimes, however, Maryland residents might think that they are protected by their commercial UIM insurance, when they are not. This is why it is important to carefully read each insurance policy, to avoid a situation like one discussed in a recent state appellate opinion.

According to the court’s written opinion, the plaintiffs in the case were a husband and wife, members of a pet and feed supply store limited liability company (LLC). The LLC had a commercial automobile insurance policy from the defendant, including UIM coverage for the LLC’s vehicles. One day, the wife drove her personal vehicle to a feed supply store to purchase inventory—a trip she made purely for business reasons. Whilst walking towards her parked car, she was hit by another vehicle in the parking lot. The driver of the second vehicle was an underinsured motorist, and had only $25,000 in liability insurance. The injured plaintiff suffered severe injuries, costing her over $200,000 in medical expenses. She could only recover $25,000 from the at-fault driver, however, and her personal insurance could not cover the full remaining amount, meaning she was not fully compensated for her injuries. Because of this, she submitted a UIM claim to the LLC’s automobile insurance carrier, the defendant in this case.

The Court of Appeals of Maryland recently issued a decision holding that insurers are required to pay rental expenses and other loss-of-use damages in uninsured motorist claims. Uninsured and underinsured motorist coverage is required by law in Maryland for every motor vehicle insurance policy issued in the state. The coverage is meant to protect insured drivers by covering their out-of-pocket expenses when involved in an accident with an uninsured or underinsured tortfeasor.

The state’s highest court considered whether the phrase “damage to property” in the state’s uninsured motorist law included the loss-of-use damages. Loss-of-use damages provide coverage for the period of time that the property could not be used, such as the expenses of a rental car while a vehicle cannot be driven. The court decided two cases involving the same legal issue. In the first case, the plaintiff was hit by an uninsured motorist and sought to recover rental car expenses from his insurer after the accident. In the second case, the plaintiff was hit by an uninsured motorist and sought to recover out-of-pocket expenses from her insurer.

Under section 19-509(e) of the Maryland Uninsured Motorist statute, a motor vehicle liability insurance policy must contain uninsured motorist coverage equal to the coverage set forth in Maryland’s financial responsibility law. That law requires coverage at least for claims for “property of others damaged or destroyed in an accident of up to $15,000, in addition to interest and costs.”

Every motor vehicle liability insurance policy issued in Maryland is required to include uninsured and underinsured motorist coverage. Uninsured and underinsured motorist coverage protects insured drivers from paying out-of-pocket expenses for their injuries if the drivers are involved in a Maryland car accident with parties that are uninsured or underinsured. The goal of Maryland’s uninsured motorist statute is to provide protection for individuals injured by uninsured motorists.

Uninsured motorist coverage refers to when an insured is involved in an accident with a driver that does not have any liability insurance. Underinsured motorist coverage refers to when an insured is involved in an accident with a driver that does have liability insurance but whose coverage is less than is needed to cover the accident victim’s injuries. If an insured driver is injured in an accident with an uninsured or underinsured driver, the insured can proceed with two separate claims. The first is a tort claim against the uninsured or underinsured driver. The second is a contract claim against the insured’s insurance company for uninsured or underinsured motorist benefits.

In a recent case before a Maryland appeals court, an insured driver was hit from behind by the underinsured driver in April 2011. In April 2013, the underinsured driver offered the insured driver a settlement offer of $20,000 (the extent of the underinsured driver’s policy), which she later accepted. The insured driver continued receiving medical care until July 2014, and in January 2015, she requested underinsured motorist benefits from her insurer to recover additional underinsured motorist benefits from her insurance company. Under her policy, she was entitled to up to $300,000 per person for bodily injury that was caused by an uninsured or underinsured motorist. In September 2016, she filed a claim in court against her insurer seeking to recover her additional benefits.

After a car accident, injured motorists, passengers, and bystanders are often left with significant property damage, physical wounds, and psychological trauma. The aftermath of these accidents can leave injury victims and their families with substantial financial obligations. Maryland car accident victims often rely on the at-fault party or their insurance company to cover the victim’s losses. However, in many situations, the at-fault party may deny liability and refuse to pay, or their insurance coverage may not adequately cover the victim’s losses. In these cases, car accident victims may be able to recover under their uninsured/underinsured motorist (UM) coverage.

In Maryland, UM coverage provides policyholders with protection if they are involved in an accident with an at-fault driver whose insurance coverage does not sufficiently cover the victim’s injuries. UM coverage can also cover injury victims in instances where the at-fault driver leaves the scene of the accident without providing identifying information.

In addition to liability insurance, and personal injury protection, Maryland law requires that motorists carry UM coverage that is at least $30,000 per person and $60,000 per incident, or a $75,000 combined limit. However, this amount may be higher because UM coverage must match the amount of standard liability coverage a motorist carries. Moreover, if a policyholder purchases higher levels of liability coverage, their UM coverage must increase to the same amount, unless the insured specifically chooses less UM protection. Even if the policyholder chooses UM coverage less than their liability coverage, the amount must still meet minimum requirements.

Those who have been involved in a serious Maryland car accident may have sustained injury, property damage, and missed time away from work. If the other driver who caused the accident has insurance, the accident victim can file a claim under that driver’s policy. However, if the at-fault driver either does not have insurance, or their insurance coverage is insufficient to cover the expenses incurred by the accident victim, the accident victim may have to look elsewhere to obtain full compensation.

Most commonly, in these situations, an injured motorist will look to their own insurance policy. Under Maryland law, all insurance policies must by default contain coverage for accidents involving underinsured or uninsured drivers. It is only if the insurance company obtains a written request by the insured to waive underinsured/uninsured motorist (UIM) protection that an insurance company can issue a policy without this coverage. Needless to say, UIM coverage can be critical to an accident victim obtaining a full and fair settlement. Unfortunately, issues frequently arise when dealing with UIM policies. One issue that comes up often in Maryland UIM insurance claims is whether the person making the claim was covered under the policy.

Maryland insurance policies are contracts, and are enforced through state contract law. In exchange for a monthly premium payable by the insured, an insurance company agrees to provide certain coverage, as outlined in the policy. Among other things, all insurance policies must contain the coverage amounts and state who the coverage applies to. Often, policies will contain “exclusions” which outline specific circumstances in which coverage will not apply.

Understanding insurance coverage is a crucial part of any Maryland car accident case. After an accident, many unfamiliar terms may come up, potentially confusing an accident victim. Insurance stacking refers to a coverage option that some states allow policyholders to obtain to protect themselves if they are in a car accident with an under or uninsured motorist (UIM). Stacking enables policyholders to make claims under two policies or make two claims from different vehicles under the same policy. To obtain stacked insurance coverage, the policyholder must live in a state that allows this type of coverage.

State laws vary on whether policyholders are permitted to stack insurance policies. For example, Maryland does not permit policyholders to stack with multiple policies or within one policy if the language is clear and unambiguous. Whereas, Virginia allows drivers to stack policies unless there is clear and unambiguous language prohibiting stacking. Additionally, policyholders who wish to get this coverage must have UIM coverage on two cars under one policy or two separate policies on two vehicles. This coverage allows motorists to increase their bodily injury coverage if they are involved in an accident with a UIM.

States that allow stacking remove some unfair and burdensome barriers that motorists face when they are involved with a negligent uninsured driver. For example, a state appellate court recently issued an opinion in a case stemming from a car accident involving an underinsured driver. According to the court’s opinion, the plaintiff purchased a car insurance policy for two of her vehicles. She initially waived her right to stack her UIM coverage but then increased her coverage and was not presented with the same waiver at that time. Several years later, she was involved in an accident with an underinsured driver, and the insurance company attempted to limit her coverage and claimed that she waived stacking when she increased her coverage. The appellate court found that it was the insurance company’s responsibility to provide her with a new waiver; otherwise, it could not be said that the plaintiff waived her right to the coverage.

For those who have been injured in a Maryland car accident, understanding the types of available damages that can be recovered in a personal injury lawsuit is essential. Generally, damages are divided into two categories:  compensatory and punitive damages. Simply stated, compensatory damages are focused on the harms caused to the plaintiff, whereas punitive damages are focused on deterring the defendant’s behavior that resulted in the plaintiff’s injuries.

Compensatory damages are very common, and they are awarded in almost all successful car accident cases. These include damages based on past medical expenses, lost wages, and emotional harm, such as pain and suffering. Punitive damages are much less common in Maryland. To obtain a punitive damages award, a plaintiff must show that the defendant exhibited “actual malice.” Thus, a plaintiff cannot receive a punitive damages award by showing mere negligence, or even recklessness. Not only that, but also the showing of actual malice must be established by clear and convincing evidence – a higher evidentiary standard than is typically applied in personal injury cases.

A recent case illustrates the type of situation that may result in an award of punitive damages.

Car accidents happen all of the time and often result in serious injuries. Normally, an injured party can recover compensation for their injuries from another driver if the other driver was at fault for the accident. However, many drivers fail to obtain the proper insurance for their vehicles. In that situation, this means an injured motorist can only recover compensation if they have uninsured motorist coverage through their own insurance.

In a recent case, a court considered a claim for uninsured motorist coverage and found the driver was able to receive his award without having it reduced by the money already paid by his insurer. The man was in a car accident with an uninsured driver and sustained serious injuries. The man had car insurance, which provided a total of $300,000 in uninsured motorist coverage and $5,000 in medical payments. His insurer paid the man’s medical bills up to the policy limit of $5,000 for medical payments in his policy. The man also made a claim for uninsured motorist coverage, but his insurer disputed the claim.

The man filed a lawsuit against his insurer for refusing to pay. The court found in his favor and awarded him over $68,000. But the court reduced the award by the $5,000 already paid by his insurer for medical bills. However, the state’s supreme court found the award should not have been reduced by $5,000. The court explained that statutory language barred the reduction in this case. As a result, the award was reinstated.

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Earlier this month, a Florida appellate court issued a written opinion in a case brought by a motorist against his own insurance company, after he was involved in a collision with an uninsured motorist. In the case, Fridman v. Safeco Insurance Company of Illinois, the plaintiff was injured after being struck by an uninsured motorist, and he sought compensation within the $50,000 policy limit of his insurance policy with the defendant. However, the defendant denied his claim. Ultimately, a jury awarded the driver $1,000,000 based on the insurance company’s bad-faith denial of the claim, and the court upheld that verdict.

The Facts of the Case

The plaintiff was injured in a 2007 motor vehicle accident. Since the other driver was uninsured, the plaintiff filed a claim with his own insurance company for $50,000. The insurance company denied his request. He then filed a lawsuit against the insurance company, alleging bad faith in failing to settle his claim and seeking the full amount of compensation for his injuries, which “shall include the total amount of the claimant’s damages, including the amount in excess of the policy limits.”

The insurance company then cut the plaintiff a check for $50,000, the limit of his policy. The plaintiff refused the check as an offer to settle the case and opted to allow a jury to determine what his compensation should be. The jury ultimately determined that the plaintiff was entitled to $1,000,000 in compensation for his injuries, as well as for the bad faith of the insurance company. The insurance company filed an appeal, asking the court to consider the $50,000 check a final settlement that preempted the plaintiff’s case at trial.

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