Underinsured Motorist Coverage — Maryland
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What Maryland Actually Requires
Maryland law requires uninsured motorist coverage on every auto policy but does not require underinsured motorist coverage. The two coverages protect you in different situations, and the distinction matters when you're structuring coverage across multiple vehicles on one policy.
Uninsured motorist coverage pays when a driver with no insurance injures you or damages your vehicle. Underinsured motorist coverage pays when the at-fault driver carries insurance but their liability limits are too low to cover your full damages. Both coverages protect you and your household members, but only uninsured motorist coverage is mandatory in Maryland.
“Maryland mandates uninsured motorist coverage but leaves underinsured motorist coverage optional, creating a gap most multi-vehicle households choose to close.”
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Maryland Uninsured Motorists
Nearly one in six Maryland drivers operates without insurance. Uninsured motorist coverage protects your household when one of those drivers causes a collision, regardless of how many vehicles you insure on your policy.
Insurance Information Institute, 2023
How the Two Coverages Differ
Uninsured motorist coverage responds when the at-fault driver has no insurance at all, when they flee the scene and cannot be identified, or when your vehicle is damaged in a hit-and-run. Maryland requires this coverage at minimum limits matching your liability policy: $30,000 per person and $60,000 per accident for bodily injury, plus $15,000 for property damage.
Underinsured motorist coverage responds when the at-fault driver carries insurance but their policy limits fall short of your damages.
The coverages do not overlap. Uninsured motorist coverage pays when there is no insurance; underinsured motorist coverage pays when there is insurance but not enough. A multi-vehicle household benefits from both, but Maryland law requires only the first.
Maryland mandates uninsured motorist coverage but leaves underinsured motorist coverage optional. Most carriers offer both, but you must add underinsured coverage explicitly.
How Carriers Structure the Coverage on Multi-Vehicle Policies
Carriers write underinsured motorist coverage as a single limit that applies across your entire policy, not per vehicle.
Most carriers offer underinsured motorist coverage at the same limits as your liability coverage. Some carriers allow you to select lower underinsured limits, but matching your liability limits ensures consistent protection.
Adding underinsured motorist coverage to a multi-vehicle policy does not require separate coverage on each car. The policy-level limit covers every vehicle and every listed driver. Removing one vehicle from the policy does not change the underinsured motorist limit; adding a vehicle does not require adjusting the coverage unless you choose to increase the limit.
$30,000 / $60,000 / $15,000
Maryland Minimum Liability Limits
Maryland requires $30,000 per person and $60,000 per accident for bodily injury, plus $15,000 for property damage. Underinsured motorist coverage fills the gap when an at-fault driver carries these minimums but your damages exceed them.
Maryland Insurance Administration
When Underinsured Coverage Pays and When It Does Not
Underinsured motorist coverage pays only when the at-fault driver's liability limits are lower than your damages and lower than your underinsured motorist limits.
The coverage does not pay for your own vehicle damage when you are at fault. It does not replace collision coverage. Underinsured motorist property damage pays only when another driver is liable, their insurance is insufficient, and you did not cause the collision. Households with multiple vehicles often carry both collision and underinsured motorist property damage because the two coverages address different scenarios.
Compare Carriers That Write Multi-Vehicle Policies in Maryland
Carriers writing auto insurance in Maryland offer underinsured motorist coverage as an add-on to the mandatory uninsured motorist coverage. Pricing and availability vary by carrier, and some offer better multi-vehicle discounts than others. Compare Maryland carriers that write policies covering two or more vehicles and confirm each offers underinsured motorist coverage at limits matching your liability policy.
Why Households With Multiple Vehicles Add Underinsured Coverage
Maryland's minimum liability requirement is $30,000 per person for bodily injury. Medical bills from a serious collision routinely exceed that amount. If your household insures three vehicles and one is totaled by a driver carrying only minimum limits, underinsured motorist coverage pays the difference between their $15,000 property damage limit and your vehicle's actual value.
The coverage applies to every household member listed on your policy, regardless of which vehicle they were driving or whether they were passengers. A household with multiple drivers faces higher exposure: underinsured motorist coverage protects all of them under one policy limit, typically set to match your liability coverage.
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Get My Maryland Car Insurance QuoteFrequently Asked Questions
Does Maryland require underinsured motorist coverage?
No. Maryland requires uninsured motorist coverage but does not require underinsured motorist coverage. Carriers offer underinsured coverage as an optional add-on, and most households with multiple vehicles add it to fill the gap when an at-fault driver's liability limits are too low.
What is the difference between uninsured and underinsured motorist coverage in Maryland?
Uninsured motorist coverage pays when the at-fault driver has no insurance. Underinsured motorist coverage pays when the at-fault driver carries insurance but their liability limits are lower than your damages. Maryland requires the first and makes the second optional.
How does underinsured motorist coverage work on a multi-vehicle policy?
Underinsured motorist coverage applies as a single policy-level limit covering every vehicle and every household member listed on the policy.
Can I decline underinsured motorist coverage in Maryland?
Yes. Underinsured motorist coverage is optional in Maryland. Carriers must offer it, but you can decline it in writing. Most households with multiple vehicles choose to add it because Maryland's minimum liability limits are low and medical bills from serious collisions often exceed those minimums.
Does underinsured motorist coverage replace collision coverage?
No. Underinsured motorist coverage pays only when another driver is at fault and their liability limits are too low. Collision coverage pays for your vehicle damage regardless of fault. Households with multiple vehicles typically carry both coverages because they address different scenarios.
What underinsured motorist limits should I select for a multi-vehicle policy?
Most carriers recommend matching your underinsured motorist limits to your liability limits.