Understanding the Multiple UM/UIM Policies Case
In an earlier post, we talked about how “non-stacking” uninsured and underinsured motorist coverage means you have less coverage than you think. Unfortunately, this same “non-stacking” rule applies even when there are multiple UM/UIM policies — with some additional quirks.
Let’s use an example.
You were the passenger in a crash caused by an uninsured driver. The driver of your car has a $30,000 UM policy. You also have a $15,000 UM policy on your own auto insurance. (more…)
UIM Coverage: Why You Have Less Than You Think
California uninsured and underinsured motorist coverage is deceptive. There is a good chance even your insurance agent doesn’t clearly understand how it works. And you almost certainly need more of it than you currently have.
The reason? Your UM/UIM insurance coverage is “non-stacking” — in other words, it only gives you coverage up to a combined total maximum benefit of your policy limit.
A rational person would expect that having $30,000 in UM coverage would mean you have an additional $30K, after you’ve used up the other driver’s policy limits (this is called “stacking”). But that’s not the case. Instead, your insurance is allowed to deduct the other driver’s policy limits before they pay you anything. (more…)