At Wessel Insurance Services, we understand the importance of staying informed about changes in insurance laws that affect our clients. Only July 1, 2024, Maryland House Bill 128 will be implemented. It’s a new law regarding Uninsured Motorist (UM) coverage, and we’re here to break it down for you.
What is UM Coverage?
UM coverage is designed to protect you and others, as well as your vehicle, in the event of an accident when the at-fault driver either has no liability insurance or insufficient coverage to pay your claim. This coverage is crucial, especially in cases where the at-fault driver cannot be identified, such as hit-and-run accidents.
Your Options:
When purchasing a policy for your automobile in Maryland, you have three UM coverage options to choose from:
1. **Option #1:** UM coverage with the same limit as your liability coverage.
2. **Option #2:** UM coverage waived to less than your liability limits.
3. **Option #3:** Enhanced Underinsured Motorists coverage (EUIM).
Each option provides different levels of protection against uninsured or underinsured motor vehicles, and it’s essential to consult with a trusted insurance professional to determine the best choice for your needs.
Understanding Your Options:
– **Option #1:** This option provides equivalent coverage for yourself and others in your vehicle, as well as for damage to your vehicle, as your liability coverage.
– **Option #2:** With this option, you waive your UM coverage to less than your liability coverage amount, potentially reducing your premium costs. It provides less coverage in case of an accident with an uninsured or underinsured motorist.
– **Option #3:** EUIM coverage must be purchased with the same coverage limit as your liability coverage. Unlike Options #1 and #2, your insurer cannot deduct from your total claim settlement by the amount collected from the at-fault driver’s policy. This is like stacking coverage.
**Cost and Coverage Considerations:**
– Option #1 provides comprehensive protection but may come at a base premium.
– Option #2 may be more affordable but offers reduced coverage compared to Option #1.
– Option #3, EUIM, offers enhanced protection but comes with a higher premium.
Conclusion:
As the law evolves, it’s crucial to stay informed about changes that may impact your insurance coverage. Understanding your UM coverage options empowers you to make informed decisions to protect yourself and your loved ones on the road.
For more information on automobile insurance and to explore your coverage options further, please visit our website at www.WesInsurance.com or call our office at 443-499-2100
**Disclaimer:**
Please note that this blog post is for informational purposes only and does not constitute legal or insurance advice. It’s essential to consult with a qualified insurance professional to assess your specific insurance needs and coverage options.
