Auto insurance companies that provide underinsured motorist (UIM) coverage to more than one vehicle in a family don’t want those limits stacked so that it might have to pay three times the limit. Similarly, separate policies that cover the same individuals may have anti-stacking provisions in their plans.
This is totally legal and will be enforced by the courts – so long as the language contained therein is clear and unambiguous. However, if there is any ambiguity in these anti-stacking provisions, the courts will generally decline to apply them. This is important because it can mean doubling or sometimes even tripling the amount to which you are entitled.
Let’s look at one example of this, recently weighed by the Idaho Supreme Court. In Gearhart v. Mutual of Enumclaw Ins. Co., which involved two separate underinsured motorist policies that covered the same young man. The policies written by the same insurance company, but they were separate, one belonging to his mother and another to his father. The couple had previously divorced. Continue reading