What is Uninsured Motorist Coverage and Why Should I "Stack It"?

Ed Normand — Tue, 14 Jul 2009 16:10:23 GMT

With the rising costs of healthcare, serious auto-accident injuries can seriously cost a lot. Fortunately, Florida and 28 other states allow an insurance strategy known as “stacking”. Put bluntly, two policies can literally be “stacked” together in the event of a major injury in an auto accident. One form of this is stacking UM and UIM (uninsured and under-insured) coverages.

Uninsured motorist coverage aids in two ways: 1) if an at-fault driver is not insured to cover your medical and property damages and 2) if you are the victim of an accident commonly known as a “hit and run” where the liable person is not known. In both instances UM coverage will kick in and cover your expenses to a certain limit.

Under-insured motorist coverage is meant to cover the difference between an at-fault driver’s coverage and your UIM coverage. If the liable driver carries a mere 10k in bodily injury (BI) coverage and your UIM exceeds that, then if your injury costs more than driver’s 10k, you will still be thoroughly compensated even though the driver was technically “covered”.

By stacking these coverages you multiply the amount of coverage for these types of unpredictable situations. There are two ways you can “stack” your UM/UIM coverage. The first is by combining the multi-car coverages under the same policy. So say you have three cars covered by X Insurance Co. with 100k/300k, UM/UIM coverage for each. You could have them stacked to cover one incident in the amount of 300k/900k depending on which (UM or UIM) situation applies to the liable driver.

Another way coverage may be stacked under Florida law is through multiple policies. In one example, one spouse may be covered through their place of employment and the other vehicle, elsewhere. Because spouses and immediate family are usually covered under UM/UIM, there is a potential for the two completely separate polices to be stacked.

The only way that this procedure can be barred is by your policy explicitly stating so. Otherwise, there is no limit to the amount of stacking that can occur. If you are involved in a situation where you think stacking may apply to your accident, contact Wooten, Kimbrough, Gibson, Doherty & Normand, P.A.

If you are contemplating what coverage to buy and don't have a clue, give me a call at 407 843 7060 and I will help you out for free. --Ed--

Originally posted at InjuryBoard by Ed Normand

State Farm Threatens to Leave Florida

Ed Normand — Tue, 27 Jan 2009 21:37:36 GMT

State Farm Insurance Company has been trying for a long time to get the State to allow it to raise rates for homeowners insurance. Now they are trying something new--threats. Like a child who does not get to play with the toy he wants State Farm is threatening to leave Florida. Surprisingly, Governor Charlie Crist, instead of cowing to them seems to be calling State Farm's bluff:

"They probably charge about the highest rates in the state anyway," Gov. Charlie Crist told reporters. "I think Floridians will be much better off without them."

State Farm intends to get rid of all lines of property and casualty insurance in Florida to include homeowners, renters, condominium, boat owners and umbrella insurance coverage. Of course, State Farm is keeping its high profit auto insurance coverage in Florida. State Farm already refuses to write new homeowners coverage in Florida. To limit its parent company liability State Farm created and transferred all Florida policies to State Farm Florida in 1998 as a stand-alone subsidiary of State Farm Mutual Automobile Insurance Co. The obvious plan then was to limit exposure of the company as a whole in case a big storm hit Florida again. Now that they are refusing to write new coverage, have created a shell company to limit liability and have not been able to bully the State to raise prices they are threatening to leave. They are abandoning 703,000 insured policy holders in Florida, many of whom have been with State Farm for decades. One suggestion to all those policy holders: drop your auto coverage with State Farm. Do not let them take the cream of the insurance business but leave all those loyal policy holders out in the cold. Not very good neighborly.

Originally posted at InjuryBoard by Ed Normand

Orlando Personal Injury Lawyer - auto insurance

What is Uninsured Motorist Coverage and Why Should I "Stack It"?

State Farm Threatens to Leave Florida