Uninsured/Underinsured Motorist Coverage and Anti-Stacking Provisions

Drew Bress : I live in Texas. I have two auto insurance policies. Would I be allowed to use both my policy limits in case of an accident with uninsured motorist?

Response : First let me expalin the use of both limits in terms of insurance to you. If you have two polices of each $1million for uninsured motorist coverage, than if you meet with an accident obviously with one vehicle than when you want to utilize both the limits it is called stacking of polices. Insurance companies normally have an anti-stacking provision in their polices which would not allow the using of both limits of the policies.

In Texas in a particular case when a person was injured due to an uninsured motorist, he was allowed to use both the limits of his policy for the same. Thus as per the gist of the judgment given below :
“The Texas statute does not speak specifically to the stacking issue, but, as evidenced in the caselaw, the courts have expressed a clear understanding that the purpose of the statute is that insureds recover for their actual damages and that a policy provision preventing full recovery conflicts with that public policy and is thus invalid. Therefore, it appears that in Texas, the “two or more auto policies” provision, when coupled with the intent and purpose of the uninsured motorist statute, will not operate to prevent stacking where the insured has two policies with an insurer and their actual damages are greater than the maximum recovery under one policy’s uninsured/underinsured motorist coverage.

The stacking and anti-stacking of the policies would depend from state to state and the provisions and whether there has been a case decided in the same lines in the state.

Presently in the states due to recession, many people are driving auto’s uninsured and so it is very important that you have this coverage. Compare auto insurance coverages at all times and reviewyour auto insurance policy to ensure that you are fully provided for and insured under most circumstances. It is wiser to pay some price now for the future when you are in a tight situation.

Tagged with: Actual Damages • Auto Insurance Coverages • Auto Insurance Policies • Auto Insurance Policy • Auto Policies • Caselaw • Conflicts • Gist • Insurance • Insurance Companies • Insurer • Judgment • Maximum Recovery • Polices • Policy Provision • Provisions • Public Policy • Texas Statute • Tight Situation • Underinsured Motorist Coverage • Uninsured Motorist Coverage

Filed under: Auto Insurance Procedures • Car Insurance Information • Review Car Insurance Coverage

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