Effective July 1, 2024, Maryland took a significant step toward protecting drivers with the automatic inclusion of Enhanced Underinsured Motorist Coverage (EUIM) in all auto insurance policies. This legislative change reinforces Maryland’s commitment to ensuring that individuals have the financial protection they need in the aftermath of motor vehicle collisions involving underinsured drivers.
What is EUIM, and Why Does It Matter?
Enhanced Underinsured Motorist Coverage ensures that drivers can recover damages up to the full amount of their policy limits, even if the at-fault driver’s insurance falls short. Unlike traditional uninsured/underinsured motorist coverage, EUIM does not offset your recovery by the amount of the at-fault driver’s liability coverage. This means Maryland drivers can access the full value of their EUIM benefits, offering greater financial security for medical bills, lost wages, and other expenses resulting from an accident.
For example:
Without EUIM: If you carry $50,000 in uninsured/underinsured motorist coverage and the at-fault driver has $25,000 in liability coverage, you can only recover up to $25,000 from your own policy (the difference between the two).
With EUIM: In the same scenario, you can recover up to your full $50,000 policy limit in addition to the at-fault driver’s $25,000 coverage, giving you access to a total of $75,000.
How to Take Advantage of EUIM:
For policies purchased or renewed before July 1, 2024, EUIM is optional. If you want this coverage, you have to “opt in.” In other words, you have too ask your insurer to add it to your existing policy. For all new auto insurance policies purchased or renewed after July 1, 2024, EUIM coverage will be automatically added to your policy. Please note that it is still possible to opt out of EUIM coverage by signing a form provided by your insurer. However, we strongly suggest not doing so as it limits the amount of protection you have for the negligent acts of your fellow motorists. As always, your attorneys at Chaikin, Sherman, Cammarata & Siegel, P.C., are here to answer any questions that you may have.
