What Is Insurance Stacking?

Stacking is a term often used when analyzing a client’s personal injury claim. Stacking refers to the process of combining or taking an aggregate of an uninsured motorist insurance coverage from more than one source. As a result, stacking can be an effective way to ensure the victim is compensated for his or her injuries, lost wages, and out of pocket medical expenses.

Florida law identifies two methods for the stacking methods. The first method occurs when an insured, who is covered under two or more separate policies, may combine or stack the uninsured motorist coverage from each of the policies. Under this method the key indicator is the fact that there are two separate policies to draw uninsured motorist coverage from.

In contrast, the second method of stacking occurs when an injured party, who is insured under one policy that covers two or more vehicles, is permitted to combine or stack the coverage for each vehicle insured on the policy. Under this method the key indicator is the fact that there is one policy that extends coverage for two cars. This may leave open the opportunity for the injured party to collect on coverage extended to two different vehicles. Florida case law has established that the number of coverages to be stacked is limited to the number of coverages for which premiums have been paid.

Often times in a car accident case the victim suffers injuries that exceed the defendant’s ability to pay. These defendants are often called judgment proof. As a result, it is crucial that all uninsured policies are examined and further that each uninsured policy is analyzed on whether coverage may be stacked. In the event you have been a victim of a car accident we invite you to call Robert Sparks Attorneys for a free case evaluation.