In some Maryland auto accidents, there is simply a limited insurance available. We see this frequently in bus accident cases and collisions involving multiple vehicles. If there are many people with injuries, the at-fault driver’s insurance policy may not be large enough to pay for those injuries. How is the money divided up?
The Set-up
An example fact pattern will help to explain this. Let’s say you are on a bus, which is hit by distracted teen who is texting on her cellphone. The teen driver has the lowest possible MAIF insurance–a policy of $30,000 per person, and $60,000 per accident in liability coverage. That means that her insurance company will pay a maximum of $30,000 for each victim, with limits of $60,000 to pay to all victims in a single accident.
The Exception: Underinsured Automobile Coverage
First, there is a way to protect yourself. If you have your own automobile insurance, you can guard against this problem. Your insurance company is on the hook to pay for your injuries if they are caused by someone else and there is limited insurance available. For example, let’s say the value of your Maryland automobile accident lawsuit is $20,000. In the situation above, where the negligent driver had an insurance policy of $30,000 per person and $60,000 per accident, and there were other people injured in the accident, you might be forced to take a low settlement. Let’s say the negligent driver’s insurance company decides that they can pay you $10,000 (and they pay a total of $50,000 to the other victims). Your insurance company, then, would step in and (either voluntarily, or more likely after being forced to by a court) would be responsible to pay you the other $10,000. This is why underinsured motorist coverage is important to protect you, your family, and your passengers. We urge you to contact your insurance agent immediately, and make sure you enough coverage–the more, the better. Otherwise, you could be in an accident with permanent injuries, and might get less than $30,000 for your troubles.
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