Stacking Uninsured/Underinsured Insurance Coverage
The Pennsylvania Motor Vehicle Financial Responsibility Law (“PMVFRL”) mandates insurance companies offer stacking to their insureds. When an individual has more than one vehicle on an insurance policy and stacking is selected, the limits per vehicle are added together.
Suppose a mother and father, Pat and Cathy, have a motor vehicle insurance policy insuring their two vehicles. Pat and Cathy also have three (3) children in college. Each child has a vehicle and each vehicle is insured on Pat and Cathy’s insurance policy. There are a total five cars on the policy. The policy provides uninsured motorist (UM) and underinsured motorist (UIM) coverage of $50,000 per person/ $100,000 per accident for each vehicle.
Coverage Without Stacking
If Pat, Cathy, or one of their three children are in a situation where they need UM/UIM coverage to compensate them for injuries sustained in a motor vehicle collision, then the total amount of coverage available is $50,000 per person or $100,000 per accident.
Coverage With Stacking
If Pat, Cathy, or one of their three children are in a situation where they need UM/UIM coverage to compensate them for injuries sustained in a motor vehicle collision, then the total amount of coverage available is $250,000 per person or $500,000 per accident. The $50,000 person/ $100,000 per accident limits are multiplied by the five cars on the policy.
For individuals with more than one vehicle on an insurance policy, stacking provides the opportunity to obtain greater insurance coverage. Insurance companies are required to offer insureds the stacking option. Further, if you reject the stacking option, the insurance company must obtain that rejection in writing. For any questions regarding stacking or any automobile insurance coverage, you should contact an experienced attorney.