Stacking Your Auto Insurance Policies Can Pay Off in Texas

Compensation in Underinsured Motorists Claim

Considering the skyrocketing price of health care, you can quickly reach the limits of an insurance policy after you have been injured in a car accident. And the need to have a vehicle to get to work can exacerbate the financial burden unless you have purchased rental car insurance or the other driver’s insurance company agrees to pay for your replacement. 

You might have adequate car insurance to cover medical bills and auto repairs of the other injured driver. However, the other driver may carry just enough to meet the Texas minimum liability requirements. Or, the other driver may be one of the 13 percent of Texans who drive without auto insurance.

This frustrating situation could leave you stuck with the bills even though you acted responsibly and followed auto insurance laws.

How to Stack Your Uninsured/ Underinsured Motorist Policies

Fortunately, Texas law permits stacking, which involves pursuing compensation under multiple auto insurance policies. 

For example, let’s say you have an UM/UIM policy with a $30,000 limit and another one with a $100,000 limit. Let’s further assume the other driver carries the minimum liability coverage of $25,000 per injured person. If your damages equaled $100,000, you would:

  • First, file a claim against the other driver’s liability insurance or file suit to obtain the full $30,000.
  • Next, file a claim for the maximum limit of your $30,0000 UM/ UIM policy
  • For the remainder, file a claim against your $100,000 UM/ UIM policy

If the other driver has no insurance, you would skip strait to filing claims with your own insurance policies.

You would use similar means of recouping costs of car repair or replacement of a totaled vehicle that exceeds the other driver’s liability coverage of $25,000 or if she or he was uninsured. 

You may also have other options for recouping damages and reducing your bills. Berenson Injury Law regularly negotiates with hospitals, doctors and rehabilitation centers to waive fees and cut costs of the medical care you need. 

Maximize Your Damages After a Dallas-Fort Worth Wreck

For more than 35 years, Berenson Injury Law has helped auto accident victims recover damages from insurance companies and, when advantageous to do so, from the driver her or himself. We consider every angle to maximize recovery, including policy stacking, third party liability lawsuits and reduction in costs negotiations.

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