How Out-Of-State Car Insurance Affects Your Claim

As a Virginia-based personal injury firm, many of our clients live and work in Virginia.  But we also represent many clients who live in other states, who were injured while driving through Virginia.

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.  This coverage, which insurance companies must provide by law, gives protection if their insured is injured in an accident by a driver who does not have enough car 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.

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 (Maryland Insurance Code, Ann., § 19-509.1.).  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 new, 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.

For more information on insurance coverage, or about your personal injury case, visit our YouTube channel, or our blog at allenandallen.com/blog.