If you are involved in a motor vehicle crash and your car is totaled, car
insurance can be a lifesaver. When are we ever really prepared for the
unexpected cost of car repairs? But, what can you do if the person who
caused the crash did not have any car insurance? The reality is, it is
far more common for you to be involved in a motor vehicle crash with someone
who is either uninsured or underinsured. Luckily, Alabama has a law requiring
both uninsured and underinsured motorist coverage be included on all insurance policies.
How does uninsured motorist coverage work?
The purpose of Uninsured Motorist, or UM, coverage is to provide insurance
benefits when someone is involved in a motor vehicle crash, and the individual
at fault does not have insurance. Underinsured Motorist coverage is also
available when the at-fault driver may be insured, but does not have sufficient
coverage to fully compensate the victim.
What does it mean to “stack” policies?
You may have heard the term “stacking” in terms of auto insurance
coverage. This concept simply means that you can add, or “stack,”
coverage for several vehicles together, in order to increase your insurance
benefits. For example, if your family has two vehicles that are each insured
for $25,000 in uninsured motorist coverage, then you could potentially
have $50,000 of coverage if you stack the policies.
Limits on stacking in Alabama
The Alabama stacking rule only allows Uninsured Motorist coverage policyholders
to stack up to three vehicles on one policy. If your family happens to
have more than three vehicles, then you should divide them up on different
policies so that you can reap the full benefit of the stacking rule.
If you have questions regarding a motor vehicle crash, contact us
or by calling the Law Office of Cody R. Wix, LLC, at (205) 381-4787.