When someone purchases a Maryland auto insurance policy, the insured must provide the insurance company with the make and model of each vehicle that they want to be insured. Typically, people choose to purchase insurance on each of their vehicles; however, it is not uncommon for a vehicle owner to choose not to name a vehicle in a policy. This may be because the vehicle is used only seasonally or is used exclusively by someone who is away on military leave or at college.
When an insurance company writes a policy, the coverage will generally extend to all vehicles named under the policy. However, if a policyholder chooses not to name a vehicle in the policy, the insurance company will likely exclude that vehicle from coverage. This is commonly referred to as the “owned but not insured” exclusion. A recent case illustrates how this exclusion could impact an injury victim’s ability to recover for their injuries.
According to the court’s opinion, a teenager died after he was involved in a fatal accident while he was operating a 49cc moped. The teenager’s family filed a claim against the at-fault driver’s insurance policy, recovering the policy maximum of $100,000. The teenager’s family also filed an underinsured motorist (UIM) claim against their own insurance carrier, seeking benefits for the loss of their son’s life.