Tuesday Tip - Enhanced UIM What’s that?
Starting on July 1st of this year all new policies sold in the state of Maryland must offer Enhanced Underinsured Motorist Coverage. This new law applies to private passenger auto policies which include motorcycle policies as well but not commercial autos. With Enhanced Underinsured Motorists Coverage in the event of a claim your liability limits will not be reduced by the amount of available coverage from the at-fault party’s insurer. This in simple terms means you will be able to use the full amount of your own insurance even if the other parties policy has paid out under their liability limits in an amount equal or greater than your own liability limit. Existing policies are not required to offer Enhanced UIM so it is important to check with your agent if you are considering adding this valuable coverage. In my opinion it would be in policyholders best interest to add the enhanced Underinsured Motorist Coverage. I have seen a number of claims which the at fault party has inadequate coverage and by adding the Enhanced UIM it will allow you to access your full limit on your own policy.
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