The other driver’s insurer offers its policy limit, but the medical expenses and other losses may be larger. Before signing a release, determine whether another policy could apply and what must happen to preserve that claim.
Uninsured and underinsured motorist coverage can be important in this situation. The amount printed beside “UM” on a declarations page is only the beginning of the review.
Identify the coverage that existed on the crash date
Gather the complete policy, declarations, endorsements, and any coverage election or waiver. Use the documents for the period containing the collision, not just the renewal packet that arrived later.
The vehicle occupied, household relationships, policy definitions, and other available insurance may affect who is covered. A card showing that insurance exists does not establish every relevant term.
Traditional and enhanced coverage work differently
Maryland Insurance § 19-509 addresses uninsured motorist coverage, including underinsured situations. Traditional underinsured coverage generally involves an offset tied to available liability coverage.
Section 19-509.1 provides enhanced underinsured motorist coverage with a different treatment of liability payments. Its current framework includes coverage and waiver rules for new policies issued on or after July 1, 2024, while older renewals and existing elections require separate attention.
Do not assume every Maryland policy has enhanced coverage. The applicable documents, policy history, statutory requirements, and damages must be reviewed together. A coverage limit is a ceiling under the contract, not a promise that the entire amount will be paid.
Notify the appropriate insurers
Report the event as required by potentially applicable policies and keep a record of the notice. Ask for claim numbers and written identification of the coverage being evaluated. A liability insurer’s acknowledgment does not necessarily mean your own carrier has been notified.
- Keep the other driver’s coverage information and any written limit offer.
- Collect your own policy and relevant household policy documents.
- Preserve correspondence about coverage, exclusions, and reservations.
- Track requests for records and stated response dates.
- Keep the proposed release unsigned until its effect is understood.
Review settlement procedures before releasing the driver
A release can affect rights involving other insurers. Maryland law and policy terms may impose notice, consent, or other procedures when settling with the liability carrier. The applicable procedure depends in part on the type of coverage involved.
Do not treat a check and a short release as routine paperwork. Identify whom the release covers, which claims it resolves, and whether it affects a remaining insurance claim. Counsel can evaluate the required steps before an agreement becomes binding.
Separate coverage from proof of the injury claim
Available insurance does not eliminate the need to establish liability, causation, and damages. Medical records, wage documentation, and collision evidence still matter. Maryland’s contributory-negligence rules may also affect the underlying claim.
The firm’s personal injury practice can review the policies and proposed settlement. Request a consultation before signing a release that could affect additional coverage.
General legal information, not advice for a particular matter. Reviewed September 16, 2026. Featured image: AI-generated editorial illustration.