A recent, very public auto insurance debacle in Maryland is highlighting the state’s mandatory uninsured motorist (UM) coverage laws and the way the state deals with issues of fault in auto insurance cases.
Matt Fisher took to his Tumblr account this month to recount his family’s ordeal in trying to get Progressive to compensate the family through its Maryland auto insurance policy after she died in a car crash in 2010, and the story has garnered national attention.
In Maryland, as in a handful of other states, UM coverage is mandatory. It pays for the medical and repair bills of people and property covered by the policies when the damages were caused by a driver who either didn’t have insurance, left the scene of the accident, or didn’t have enough coverage to fully compensate the covered party for all of their damages.
The minimum amount a person is required to have for UM coverage in Maryland is $30,000. However, Kaitlynn Fisher (Matt’s sister) had taken $100,000 for her Progressive Insurance policy, according to Allen Cohen, an Annapolis attorney who represented her parents, Joan and Stephen, in a case related to their daughter’s policy.
Nationwide, the driver of the other car’s policyholder, settled with the family, paying out the $25,000 limit on his policy. Since the other driver’s policy limits were exhausted, the Fishers sought to collect the sum of the $100,000 provided by the Progressive UM policy.
But Progressive balked at paying. In order to receive the monies, the family had to file suit against the underinsured driver. In the trial, Progressive had an attorney representing its interests—on the side of the driver of the other vehicle.
A point of contention in the case was whether Fisher was truly not at fault for the accident. According to The New York Times, Progressive had already paid Fisher’s passenger and the two occupants of the other car hundreds of thousands of dollars as a result of the accident. Even though Fisher hadn’t been proved liable for their injuries, Progressive preemptively paid them in order to avoid litigation.
After the UM claim was denied, the Fishers had to take the other driver to court to establish fault. The case hinged on eyewitness accounts of the accident, specifically related to what driver did not stop at the red-light intersection where the accident occurred, according to Cohen.
Whether one or both drivers contributed to the accident is a big issue in Maryland. That’s because it’s one of only five states that has a system of “contributory negligence.” Under this fault system, if a party is in any way responsible for an accident, they can’t successfully sue any of the other parties for compensation. So if Fisher was at least 1 percent responsible for the accident, that $100,000 in UM benefits would be off limits.
Progressive’s move was something the family found offensive—and the public did as well after the brother took the story to social media platforms.
Earlier this month, a Baltimore court awarded the Fishers $760,000, deciding the other driver was at fault. However, as Cohen noted, that money is not likely collectible as he is underinsured. And while that money could be collected from his assets, that’s not likely.
After that case, Progressive settled with the family, saying on their website in a written statement that, “In accordance with that decision, Progressive worked with the Fisher family and their legal representative to resolve the claim. This was a tragic accident and our sympathies go out to the Fisher family.”
Progressive also explains their position in the case on their website, saying, “A trial was necessary so that a jury could review all of the evidence and come to a decision. In those circumstances, under Maryland law, the insurance company providing the underinsured motorist coverage is considered a defendant. As a defendant in this case, Progressive participated in the trial procedures on our own behalf while Nationwide represented the other driver.”
Cohen notes that insurance companies have a right to defend itself if they make a good faith investigation—something that they are obligated to do to for their insured.
“That didn’t happen here,” he said. “They did not accurately analyze the information.”
