After an accident, the drivers involved are supposed to exchange contact and insurance policy information so they can inform their companies and work on getting their claim and compensation. But what happens if the other party doesn’t have car insurance?
While everyone is supposed to drive with insurance, there are many people who don’t. If you’re in an accident with someone who is uninsured or underinsured, your car accident claim may become more difficult than you first expected. Drivers have coverage for instances like this, but the insurance they get from their company usually depends on the uninsured or underinsured driver. Maryland has a new insurance policy to further help drivers in accidents with drivers who don’t have enough or any insurance at all.
What Does the New Enhanced Uninsured Motorist Coverage Do?
The coverage is called Enhanced Underinsured Motorist Coverage. It went into effect on July 1, 2018. Before this new policy was in place, a driver could recover damages from their insurance company after subtracting what the underinsured motorist provided. So, if a driver had $50,000 in coverage and $10,000 from the negligent driver, they would have recovered $40,000 from their insurance company.
The enhanced uninsured motorist coverage takes away the subtraction. So, the driver could collect $10,000 from the negligent driver and $50,000 from their uninsured coverage.
The point of the enhanced uninsured motorist coverage is to allow the policy holder to stack their coverage on top of what they get from the third party that was liable for the accident.
People do not automatically get this coverage. In order to get the enhanced uninsured motorist coverage, they must write in to possibly get this coverage. But it isn’t all one-sided. As of October 1, 2017, insurance carriers are supposed to start offering enhanced uninsured motorist coverage when there’s a renewal of extension of the policy.
What Are the Benefits and Drawbacks of this Coverage?
It’s good to know that policies are being put in place to update how coverage works and to provide more help to drivers. Enhanced uninsured motorist coverage does have its advantages, but it also has disadvantages.
- Allows drivers to stack policies.
- EUIM was made to give drivers more coverage and protection if they get into an accident with an uninsured or underinsured driver.
- The bill could lead to higher premiums.
While the coverage itself could give the driver more money in compensation, this may lead to an overall rise in premiums.
This increase in cost could make keeping up with each month’s expenses a little more difficult. People may not want to raise their premium cost because they may not be able to afford this coverage. There’s also a chance they won’t want to use this higher-priced coverage because they think it’s a slim chance they’ll get in an accident with an underinsured driver.
Get Help from a Baltimore Car Accident Lawyer
Even with this kind of coverage, you may want to seek help from a personal injury lawyer so you make sure your rights are protected. There’s a possibility that the insurance company will want to settle the matter as soon as possible. While it’s probably tempting to settle your claim quickly so you can move on, this doesn’t necessarily mean the settlement is fair. If you settle early, you may be settling for less than you deserve.
You may be in a difficult financial situation if your settlement doesn’t cover the costs of the damages from the car accident. There are so many facets to consider. Your injuries may have made you stay in the hospital, visit a number of doctors or specialists, or need prescription medication for the pain. You may also require future rehabilitation services so you can heal.
During this time, your ability to work may be limited or you may not be able to work at all. Balancing the medical bills with the stress of missing work and living with painful injuries is a lot for one person to handle. You may be depending on your settlement to help you afford your medical bills and make up for the time you’ve missed from work.
You don’t have to go through the claims process alone. A Baltimore car accident lawyer from Belsky, Weinberg & Horowitz, LLC can help you with your car accident claim. Call our office today to speak with one of our skilled lawyers. If you have any questions or concerns about your case, you can schedule a consultation, free of charge.