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House of Representatives
Session of 2021 - 2022 Regular Session


Posted: February 22, 2021 03:43 PM
From: Representative Timothy J. O'Neal
To: All House members
Subject: Stacking Option for Auto Insurance
I will soon introduce legislation to address the confusing “stacking” option our constituents face when they purchase auto insurance. Stacked insurance is the combining or “stacking” of Uninsured and Under Insured Motorist (UM/UIM) coverage limits on multiple vehicles to increase the amount you would be covered for in case of an accident.
Specifically, my legislation will repeal Section 1736 and 1738 of the Motor Vehicle Responsibility Law (MVFRL). By way of background, Section 1736 of the MVFRL prohibits a consumer from purchasing more UM/UIM coverage than Bodily Injury (BI) coverage. However, the MVFRL was amended in 1990 with Section 1738 to circumvent that limit. Under 1738, consumers with more than one vehicle (cars and motorcycles) can “stack” their UM/UIM coverage for each car they own, unless they have previously waived the coverage. So, a consumer can have more UM/UIM coverage than BI coverage, but only if he/she has more than one vehicle and if he/she wants that coverage to be the multiple of however many vehicles he happens to own at a given time.
The current law is as confusing and convoluted as it sounds. My legislation will eliminate this confusion by allowing consumers to buy as much UM/UIM coverage as they want, and therefore makes “stacking” of UM/UIM coverage obsolete. UM/UIM coverage is important in allowing consumers to protect themselves. My legislation will make it easier for them to do so.

Introduced as HB1083