Supreme Court Reverses Favorable Decision for Consumers of Auto Insurance

In the last week of December, 2007, the Pennsylvania Supreme Court modified its previous decision where they had held that where "stacking" of uninsured/underinsured motorist benefits had been waived by the signing of appropriate waiver forms, if a new vehicle was added to the policy, new waiver forms were necessary.  Otherwise, coverage would be stacked.

"Stacking" of uninsured or underinsured insurance coverage occurs when you have more than one vehicle and the coverage of each vehicle is added to provide a total benefits equal to the gross amount of coverage for all of your vehicles.  For instance:  if you have three (3) cars and each car has $15,000 of uninsured/underinsured coverage for any one individual involved in an accident, then the total coverage would be $45,000 if "stacking" was selected.  Now you must sign a waiver if you don't want stacking.  The Court's recent decision holds that if you add a new vehicle to your policy, it is not necessary for the insurance company to obtain a new signature declining or "waiving" the coverage again. 

Consumers should be careful anytime they add a new vehicle to determine whether or not their old insurance coverage is adequate or whether changes in your circumstances should require additional insurance coverage.  If you have any questions, Dan Monahan will be happy to review your insurance coverage, at no fee. 

The Monahan Law Practice
300 North Pottstown Pike
Suite 210
Exton, PA 19341-2233

Phone: (610) 363-3888
Fax: (610) 363-2429