Maryland Underinsured Motorist (UIM) Claim

When another driver causes a crash but does not carry enough insurance to cover your losses, an underinsured motorist claim can help close the gap. Underinsured motorist coverage, often shortened to UIM, is part of your own auto policy. It steps in when the at fault driver has some liability insurance, but the limits are too low to pay for your medical bills, lost income, and other damages. Our Maryland car accident lawyers handle these claims regularly and can explain how the coverage works in your situation.

What Underinsured Motorist Coverage Is

Underinsured motorist coverage protects you when the person who hurt you does not have enough liability insurance to pay for the harm they caused. Maryland law requires insurers to offer uninsured and underinsured motorist coverage, and most drivers carry it as a single combined coverage on their policy. If you were injured by a driver whose policy limit is lower than the value of your claim, your own UIM coverage can pay the difference up to your policy limit.

When Underinsured Motorist Coverage Applies

UIM coverage applies when three things are true. First, another driver was at fault for the crash. Second, that driver carried liability insurance, but the limit was not high enough to cover your damages. Third, you carry underinsured motorist coverage on your own policy with a limit higher than the at fault driver’s liability limit. If the at fault driver had no insurance at all, that is an uninsured motorist claim rather than an underinsured claim. The same uninsured motorist coverage is often the civil remedy when a driver flees the scene, which we discuss on our Maryland hit and run accident lawyer page. You can read more about that on our page covering an uninsured claim in a Maryland car accident.

How Maryland Handles Stacking and Offsets

Maryland follows an offset approach rather than an add on approach for underinsured motorist coverage. This is one of the most misunderstood parts of these claims. Under Maryland law, your UIM limit is reduced by the amount you recover from the at fault driver’s liability insurance. In practice this means your underinsured motorist coverage pays the difference between what you collect from the at fault driver and your own UIM limit, not the full UIM limit on top of the liability payment.

For example, if the at fault driver carries a thirty thousand dollar liability limit and you carry a one hundred thousand dollar underinsured motorist limit, your UIM coverage can pay up to seventy thousand dollars after the thirty thousand dollar liability payment. Maryland does not allow you to stack the two amounts to reach one hundred thirty thousand dollars. Because the numbers depend on the policies involved, it helps to have a lawyer review the declarations pages before you settle with the liability insurer.

Protecting Your Right to Recover

Before you accept a settlement from the at fault driver’s insurer, you must give your own underinsured motorist carrier written notice and a chance to consent to the settlement. Maryland law gives your UIM insurer a limited window to respond and to preserve its rights against the at fault driver by advancing payment. If you settle and release the at fault driver without following this process, you can jeopardize your underinsured motorist claim. This is a common trap, and it is one reason to speak with a lawyer early.

How to File an Underinsured Motorist Claim

Filing a UIM claim starts with notifying your own insurer that you intend to pursue underinsured motorist benefits. You will need to document the crash, your injuries, and your damages, then establish that the at fault driver’s liability limit is not enough to cover your losses. The steps generally include the following.

• Report the crash to your own insurer and state that a UIM claim may apply.
• Gather the police report, medical records, wage loss documentation, and repair estimates.
• Confirm the at fault driver’s liability limit and your own UIM limit.
• Give your UIM carrier written notice before settling with the liability insurer.
• Present your damages to the UIM carrier and negotiate, or proceed to arbitration or suit if the carrier will not pay a fair amount.

Keep in mind that Maryland is a contributory negligence state, which can affect what you recover. You can learn more on our page about contributory negligence in a Maryland car accident.

Deadlines for Maryland Underinsured Motorist Claims

The general statute of limitations for personal injury claims in Maryland is three years from the date of the crash. An underinsured motorist claim is a contract claim against your own insurer, and different timing rules and policy conditions can apply, including notice requirements and the consent to settle process described above. Missing a deadline or a policy condition can bar your claim, so it is wise to confirm the applicable time limits early rather than assume the three year period is the only one that matters.

Speak to a Maryland Car Accident Lawyer

Underinsured motorist claims involve your own insurer, strict notice rules, and Maryland’s offset approach, all of which can reduce what you receive if they are handled incorrectly. A lawyer at Gelb and Gelb can review your policy, protect your right to UIM benefits, and pursue the full amount you are owed. Call our office today for a free consultation at (202) 331-7227. You can also visit our Maryland car accident lawyer page to learn more about how we help injured drivers.

What Damages an Underinsured Motorist Claim Can Cover

An underinsured motorist claim can cover the same categories of damages you could pursue against the at fault driver. This includes past and future medical expenses, lost wages and reduced earning capacity, property damage in some policies, including a total loss of your vehicle,, and non economic damages such as pain and suffering. The value of your claim depends on the severity of your injuries, the length of your recovery, and how the crash has affected your daily life. Because the UIM carrier is the one paying, it will scrutinize these figures closely, so thorough documentation matters.

Arbitration and Disputes With Your Own Insurer

Many auto policies require that underinsured motorist disputes go to arbitration rather than a jury trial. If your insurer disputes fault or the value of your claim, an arbitrator may decide the outcome. Reviewing your policy language early tells you whether arbitration applies and what procedure you must follow. A lawyer can present medical evidence, expert testimony, and wage records in arbitration the same way they would in court, and can push back when an insurer undervalues a legitimate claim.

Common Reasons Insurers Deny or Reduce UIM Claims

Even though you pay for underinsured motorist coverage, your own insurer does not simply hand over the money. Insurers often argue that your injuries are less serious than claimed, that treatment was unnecessary, or that a prior condition explains your symptoms. They may also argue that you failed to give proper notice or that you settled with the at fault driver without consent. Understanding these tactics ahead of time helps you avoid the mistakes that give an insurer a reason to pay less than you deserve.