Can You Stack Insurance Policies in Maryland?

Maryland law – specifically Insurance Code Section 19-513 – prohibits the stacking of insurance policies. Accordingly, under Maryland law, if there is uninsured/underinsured motorist coverage, the insurer is liable to its insured for the full amount of the accident victim’s damages minus the amount paid by the liability carrier or the Defendant.

In other words, let’s say you have a Maryland accident case where the defendant has a $100,000 liability policy and the injury victim has a $300,000 uninsured/underinsured motorist policy. If the $100,000 is paid by the liability carrier, the uninsured/underinsured motorist obligation is $200,000, not $300,000. So if the liability policy is lower than the UM/UIM limits, you are going to be capped in your recovery for the uninsured/underinsured motorist claim by the amount of the policy.

Lawyers in other jurisdictions – Pennsylvania leaps to mind – are shocked at how conservative Maryland accident law is on stacking insurance policies and lots of other issues related to the handling of car accident claims. We are a blue state with very red accident laws.