Visitor Question

Is my agent allowed to call and request I drop stacking on my policy?

Submitted By: Stephenie (Pittsburgh , PA)

My agent called me and told me I need to drop stacking on my policy. I’ve had this coverage for many years. She said it wasn’t necessary and it would save me money. When I asked what stacking was she said it’s just an extra coverage, but I’m covered without it. Is this legal? I was in an accident 4 months later and found out I may benefit from having this coverage that she suggested I drop.

Disclaimer: Our response is not formal legal advice and does not create an attorney-client relationship. It is generic legal information based on the very limited information provided. Do not rely upon the information in our response, or anywhere else on this site, when deciding the proper course of a legal matter. Always get a personalized case review from a local attorney.

Answer

Dear Stephenie,

Let’s start by explaining what “Stacking” insurance actually means. If you have several vehicles included on one car insurance policy, you can collect the uninsured/underinsured motorist bodily injury (UMBI) coverage of all the insured vehicles in the case of one (1) accident.

Here’s an example:

You have 2 separate car insurance policies. One is for your car, and the other for your motorcycle. You have $50,000 of Uninsured Motorist Bodily Injury (UMBI) coverage for each vehicle.

One day, an uninsured driver slams into your motorcycle. Your motorcycle is totaled and you are seriously injured. If you had stacked your UMBI coverage, you would be able to file a claim under both policies. This presumes you need the additional coverage for medical treatment and related costs. If the medical bills and related costs of treating your injuries exceed one policy’s $50,000 limit, you will still have additional coverage up to $50,000.

Your agent seems to have acted in good faith when she suggested your drop the stacked UMBI coverage. There is no indication she coerced you to drop the additional insurance. Moreover, doing so would have been against her best interests. If you dropped the additional insurance, your agent likely would have made less money.

Presuming you are an adult, if you didn’t understand what your agent was talking about when she discussed dropping stacking, you could have done some research online. At that time you could have made an informed decision whether to drop the insurance, or not. It’s important to understand that insurance agents have no legal fiduciary duty to represent your best interests.

The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from a licensed attorney. Find a local attorney to give you a free case review here , or call (888) 647-2490.

Best of luck,

Published: October 19, 2017

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