What is Insurance Stacking?

Why is Car Insurance Important?

Auto insurance in New Mexico allows you to protect yourself and those around you in case the unthinkable happens. Car accident costs in New Mexico can be incredibly expensive, with property damage expenses (loss of vehicle) and medical bills for both parties. However, while having auto liability insurance is mandatory in New Mexico, there are some drivers who either drive uninsured or allow their insurance policy to lapse. Still others only have the minimum requirements for car insurance in New Mexico, and that doesn’t always cover all losses from a car accident. These drivers are considered underinsured.
New Mexico also requires insurance companies to offer Uninsured Motorist and Underinsured Motorist coverage to drivers. These insurance policies help victims of car accidents recover if the at-fault party is uninsured or their insurance policy doesn’t cover the losses that resulted from the car crash.

In The Article

How Does Stacking Work in Insurance?

According to Allstate, “Stacked insurance typically applies to uninsured and underinsured motorist coverage. Stacking means that you can combine coverage limits for multiple vehicles.” When you purchase your car insurance, you have the option to get uninsured motorist coverage and underinsured motorist coverage. When you combine these two types of insurance with your liability insurance and comprehensive insurance, you are insurance stacking for your vehicle.

Is Insurance Stacking Legal?

While some states don’t allow insurance stacking to maximize your protection in case a car wreck occurs, in New Mexico, insurance stacking is legal.

Can You File Claims from Multiple Insurance Policies from the Same Injury?

While you can file claims from multiple insurance policies and potentially multiple insurance companies, you cannot file multiple claims for the same losses incurred by a single injury. For example, if you have underinsured motorist protections through your insurance provider, and the at-fault party has minimum liability insurance, you may be able to recover the policy limit from both insurance providers, as long as you can prove that your injury, medical expense, and other losses require monetary amounts that exceed one policy or the other.

What Are the Insurance Stacking Laws in New Mexico?

In New Mexico, Underinsured and Uninsured Motorist coverage is not required; however, you are allowed to stack these coverages in your insurance to help ensure you are able to recover from losses incurred from your injury.

A New Mexico Car Accident Lawyer Can Help

Navigating the legal aspects of a car accident claim can be incredibly difficult if you’re dealing with just one insurance company. However, when you add stacked insurance to the mix, things can get exponentially more difficult. Doing this all while you’re trying to keep things in order, recover from physical and psychological injuries, and figuring out how to pay your bills if you’re out of work can make this all seem impossible.
Insurance companies bank on the confusion, disorientation, and a victim’s inability to understand their rights after a car accident. That’s why it’s so important to find a New Mexico car accident attorney who will fight for you. The experienced attorneys at Ron Bell Injury Lawyers will review all insurance policies from all parties involved in the accident. We’ll work to negotiate with these insurance companies to get you the recover you deserve. Call today to get your free case evaluation. 898-BELL.