What is "stacking" of benefits?
If you have more than one vehicle, you must choose whether or not to "stack" your uninsured or underinsured coverage (see section on uninsured and underinsured motorist coverage). If an uninsured or underinsured motorist injures you, stacking allows you to recover the maximum amount of benefits by combining the benefits on ALL of your cars that are insured.
Under current law the stacking of benefits is optional.
Example - Suppose you own two cars, a red one and a blue one. You have a policy with $15,000 underinsurance benefits on the red car, and $25,000 on the blue car. Then, you're injured in an accident that was not your fault while you are in the red car. You seek damages against the other driver, and are awarded $70,000. Now suppose that the driver that caused your injuries has only $15,000 in liability coverage.
The other driver's insurance company will pay up to $15,000 of the damages awarded. Of the remaining $55,000, you’ll recover $15,000 in underinsurance benefits under the policy on the red car in which you were driving. If you opted not to stack your coverage, you could not collect the remaining $40,000.
If you had selected to stack the benefits of your red and blue cars, you would be able to recover an additional $25,000 from the underinsured benefits on your blue car. This would allow you to recover a total of $55,000: $15,000 from the driver that caused your injuries, and $15,000 from the policy on your red car and $25,000 from the policy on your blue car.
Of course, if you stacked the policies and selected to have an additional $15,000 in underinsurance benefits on either car, you could recover the entire award of $70,000.
CONCLUSION
PLEASE CHOOSE TO STACK YOUR POLICIES IF YOU HAVE MORE THAN ONE VEHICLE.
If you still have questions about your Pennsylvania auto insurance coverage, call Marc Pachtman, Esq. at 610-859-3700, or toll free: 866-86-TOUGH. Or your questions now.
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