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A Few Things You Need To Know Regarding 1 Insurance

What you don't know about insurance could be a disaster. Find out what you didn't know but need to know.

Author: Chance Smith
Date: Dec 29, 2010 - 4:36:14 PM

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The hot subject in insurance circles around and about New Mexico is uninsured motorist coverage, and to be more concrete the stacking of uninsured motorist coverage. Many insurance firms today are selling policies that they believe provide non-stacked uninsured motorist coverage, but the courts have translated those policies to provide stacked coverage.

At that point in our conversation almost all of you're wondering what in the world stacked uninsured motorist coverage is. The fact of the matter is that most of the people don't really know what it is that they're purchasing when they go to an insurance broker and buy insurance ; they just tell the insurer's agent that they need insurance and trust the person to be responsible, honest, and trustworthy with their money lives.

usually insurer's agents are all those things, and they do the very best that they can. If a purchaser has questions they can gladly answer any and all questions, but the question about stacking of uninsured motorist coverage seldom comes up. It is simply not something that the majority are aware of.

Stacking occurs when one coverage limit is added to another for the maximum quantity of coverage available or when the coverage limit is multiplied by the quantity of covered cars or insureds involved in an accident. Let me give you an example. John has 2 vehicles on his auto policy, a Ford and a Chevy, and he has uninsured motorist boundaries of twenty-five / 50 / 10. John is struck by an uninsured motorist while driving his Ford and maintains injuries totaling 35,000. Under his uninsured motorist coverage John would have coverage for 25,000 of his 35,000 worth of injuries. In order to recover the leftover 10,000 in injuries John would need to stack coverage for the Chevy onto the accident, so making and further 25,000 worth of insurance.

An insurance company will go to a lot of difficulty to work out the correct rate for the cover offered, and if a court decides that the coverage offered was changed than what the insurance company thought they had offered it can create a lot of disruption in the halls of the insurer. It has the ability to be terribly injurious to the balance sheet of an insurance firm, and that is the reason why insurance companies in New Mexico are so preoccupied about the recent court calls in the State.

Most insurance corporations would rather no stack their limits as it creates an extra exposure and risk associated with each and every policy that they sell. They currently offer stacked and non-stacked coverage on most personal vehicle policies. It does not cost that much more to stack your boundaries and I would recommend that you do that.

If you have got any questions regarding vehicle insurance or just insurance generally I would be glad to answer any questions that you might have.

ABC Insurance Services has been sellingNew Mexico auto insurance coverage for more than ten years. New Mexico car insurance is our specialty. .

ABC Insurance Services has been sellingNew Mexico auto insurance coverage for more than ten years. New Mexico car insurance is our specialty. .

View all articles by Chance Smith

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