If you are in a car accident, insurance coverage is critical to recovery on your claims. It is important to understand insurance coverage issues. One such is issue is the availability of stacking of coverage.
To begin, insurance coverage issues generally and dealing with insurance companies more specifically can be complicated and challenging. As such, if you have suffered serious personal injuries in an auto accident, you should consult with an experience personal injury attorney right away to insure that your rights are fully protected.
First, it is important to understand what “stacking” of coverage means. Stacking means that you can combine uninsured/underinsured motorist coverage on your various insured automobiles so that your total available coverage is the combined coverage of all policies. In other words, stacking allows you to add the individual policy limits together to get higher available coverage limits.
For example, if you have 2 cars that are each insured at $25,000, then you would have a total of $50,000 in uninsured/underinsured motorist coverage available. The same would hold true of if you had 3, 4, 5 … cars. In addition, stacking might allow you to stack policies for other motor vehicles such as trucks and motorcycles. It might even include ATV‘s.
As you can see, stacking of coverage can result in significant increases to available coverage in the case of an accident as multiple policies can add up quickly. However, stacking is only allowed on some types of coverage. Specifically, in New Mexico, stacking is allowed only on uninsured and underinsured insurance coverage. It is not allowed on liability coverage. Nor is it allowed on medical payment coverage or other coverage.
Many states do not allow stacking at all, even on uninsured and underinsured coverage. Stacking of uninsured and underinsured coverage in our State is very important since New Mexico has a very high rate of uninsured drivers and even higher rate of underinsured drivers. The fact is that if you are in accident in New Mexico, there is a very good chance that the other driver will either be completely uninsured or grossly underinsured in cases of serious personal injury or wrongful death.
For a little perspective, New Mexico is always near the top for uninsured motorists. For those that do have insurance, the minimum liability limits are only $25,000. This means that without uninsured/underinsured coverage and lots of it, you will not come close to being fully compensated for your injuries. Unfortunately, many innocent drivers will also hold minimal limits of $25,000 which means stacking is critically important for any meaningful recovery.
For those that are reading this and it is not too late, get as much uninsured/underinsured coverage as you can. Get it on all your vehicles so you will have the benefit of stacking. It is not only the essential to recovery, you may find it is one of the few good deals in insurance.
New Mexico Laws on Rejection of Uninsured/Underinsured Motorist Coverage are Retroactive
Don‘t Get Lured Into Waiver of Uninsured/Underinsured Motorist Coverage
Stacking Uninsured/Underinsured Motorist Coverage in New Mexico