Maryland Auto Insurance administers Maryland’s Uninsured Division (UD). The UD is responsible for managing claims arising from accidents in which a Maryland resident suffers injuries due to the actions of an uninsured at-fault driver with no other source of insurance. Before providing coverage, the UD reviews the claim to verify that no other coverage exists.
In a recent case, a pedestrian was struck by a rental car while legally crossing the street at a crosswalk. The police report determined that the driver of the rental car was responsible for the accident. The pedestrian hired an attorney to represent them for their injuries. However, the insurer for the rental car denied coverage, because the driver was not listed on the rental contract. The person who rented the vehicle was in the car at the time of the accident, but had allowed someone else to drive.
The person who was driving the rental car did not have an insurance policy but another person who lived in their household did have a policy. The attorney for the injured pedestrian also filed a claim with this insurance carrier, but, this company also denied the claim.
Based on these coverage denials, a claim was presented to the Uninsured Division. The Uninsured Division conducted an investigation which indicated that the insurance company for the rental vehicle should provide coverage for the accident since the driver was permitted to drive the rental car by the renter. According to Maryland Law, the rental company was required to provide coverage because the driver had permission from the renter.
The investigation also concluded that the loss should be covered under the policy of rental driver’s roommate since they live in the same household. The Uninsured Division argued that the other insurance policies should apply before the Uninsured Division’s coverage.
Ultimately, the company that insured the rental car driver’s roommate provided coverage for the loss and settled the claim and, eliminating the need for legal action.
This case demonstrates how the Uninsured Division assists innocent, injured Maryland residents. Despite the initial coverage denials, the Uninsured Division was able to investigate and develop a compelling case that led to another carrier to providing coverage for the injuries sustained by the innocent pedestrian.
