Uninsured vs. Enhanced Underinsured Motorist Coverage in Maryland

By the FigureMyTax Editorial Team · How we calculate

Maryland requires UM coverage equal to your liability limits unless waived. Standard UM subtracts what the at-fault driver paid; enhanced underinsured motorist coverage does not. Both require you to send the liability insurer's policy-limits offer to your insurer first.

Required coverage and minimums

Every motor vehicle liability policy must include UM, at least equal to the minimum liability amounts and, unless the first named insured affirmatively waives it in writing on the Commissioner's form, equal to the liability coverage (Insurance 19-509(e) and 19-510). The minimum liability limits are $30,000 per person, $60,000 per accident and $15,000 for property damage (Transportation 17-103).

The two formulas

Standard UM: your coverage less the amount paid to you by the liability coverage that exhausts the at-fault driver's policies. Enhanced underinsured coverage: the full coverage amount with no such reduction. A vehicle counts as uninsured under standard UM when its liability limits, or what is left after payments to others, are less than your UM coverage.

Notice before settling

If the liability insurer offers a settlement that would exhaust the applicable liability limits, you must send a copy of the written offer by certified mail to your UM insurer. It has 60 days to consent or refuse; if it refuses it must pay you the amount of the offer within 30 days to preserve its subrogation rights, and you may then settle without prejudice to your claim (19-511 and 19-511.1).

Cap and deadline

Noneconomic damages in a personal injury action are capped at $500,000 for causes of action arising on or after October 1, 1994, increasing by $15,000 each October 1 (Courts 11-108). A civil action at law must generally be filed within 3 years from the date it accrues (Courts 5-101).

Next steps

Stacking is a separate question; see our statute post and the explainer, then use the Maryland UM/UIM stacking calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Maryland's rules apply to your specific case with a licensed Maryland attorney.