How out-of-state car insurance affects your claim | Allen and Allen

How out-of-state car insurance affects your claim

  • August 27, 2021
  • Blog

As a Virginia-based personal injury firm, many of our clients live and work in Virginia.  However, we also represent many clients who live in other states, who were injured while driving through Virginia.Driving out of state in Miami, Florida, seen through a windshield

Car insurance coverage is based on the state in which the insurance policy was issued (usually where the insured person lives) – not the state where the accident happened.  At our firm, we often help clients who have out-of-state car insurance.

In Maryland, for example, individuals who have motor vehicle insurance also have underinsured motorist coverage.  Insurance companies must provide this coverage by law, and it gives protection if their insured is hurt in an accident by a driver who doesn’t have enough insurance to cover the cost of the injuries that they caused (Maryland Insurance Code, Ann., § 19-509).  This insurance acts like gap coverage, making up the difference between the defendant’s insurance and the injured victim’s own insurance.

Out-of-state insurance examples: Maryland drivers

EXAMPLE:  You have a Maryland insurance policy that includes $100,000 in underinsured motorist coverage. The person who hit you has $30,000 in liability insurance coverage for your injuries.  If you are injured, you have up to $100,000 in coverage for your injuries – $30,000 from the person who hurt you and $70,000 from your own insurance.

Effective July 1, 2018, Maryland enacted a new law for enhanced underinsured motorist coverage.  This is an optional, additional type of Underinsured Motorist Coverage that is available in addition to whatever the limits of the liability insurance coverage.

EXAMPLE: You have a Maryland insurance policy with $100,000 in underinsured motorist coverage. The person who hit you has $30,000 in liability insurance coverage for your injuries.  If you are injured, you have up to $130,000 in coverage for your injuries – $30,000 from the person who hurt you and $100,000 from your own insurance.

The enhanced underinsured motorist coverage means that you and your loved ones can make sure you have as much protection as possible. In order to be entitled to this additional protection, you must add enhanced underinsured motorist coverage to your Maryland policy.

If you have been injured through no fault of your own, you may be entitled to compensation. Call the experienced car accident attorneys at Allen & Allen for a free consultation, at 866-388-1307.