Posts Tagged ‘auto insurance policy’

In a rare move, in Sackett v. Nationwide Mutual Insurance Company, the Pennsylvania Supreme Court has decided to re-consider its earlier ruling which held that each time an insured adds a new vehicle to an existing auto insurance policy, the insurance company must obtain from the insured a new waiver form which rejects stacked UM/UIM coverage. In the absence of a new waiver from which rejects stacked UM/UIM coverage each time an insured adds a new vehicle to an existing policy, the Supreme Court’s earlier ruling would result in the insured being deemed to have stacked UM/UIM coverage on their auto policy (even if the insured did not pay for such coverage). Legal observers were shocked by the Court’s decision to re-consider its original decision in Sackett as almost all decisions of the Supreme Court are final.

Nationwide had requested re-argument and re-consideration of the Supreme Court’s earlier ruling because of the hardship it imposes on insurance companies. The Supreme Court will most likely decide the case before the end of the year. In the meantime, the Pennsylvania Legislature should re-examine the Pennsylvania Financial Responsibility Motor Vehicle Law (75 Pa.C.S.A. 1701 et seq.) and possibly vote to amend the Law to eliminate any ambiguity regarding this issue.

John P. Finnerty, Esquire

In a ruling highly favorable to injured plaintiffs, in Sackett v. Nationwide Mutual Ins. Co., PICS Case No. 07-0594 (April 17, 2007), the Pennsylvania Supreme Court held that an insurance company is required to obtain a new executed waiver of stacking from from a named insured every time the named insured adds a vehicle to an existing auto insurance policy.  An insurance company’s failure to obtain a new executed waiver of stacking form signed by a named insured will result in the insured being deemed to have stacked UM/UIM coverage.  The policy will be deemed to provide stacked UM/UIM coverage even though the insured never paid for such coverage because the insured must be given an opportunity to waive stacked coverage. 

If you have been injured in a motor vehicle accident and have a question regarding the amount of UM/UIM coverage on your policy, contact DLP team of Pennsylvania Personal Injury Attorneys for a free consultation.

John P. Finnerty, Esquire  

You may not often worry about it, but you should be aware that there are thousands of uninsured and underinsured drivers traveling on Pennsylvania roadways.  An uninsured motorist is a person who has no auto insurance to cover damages he causes in a motor vehicle accident.  An underinsured motorist is a person who has limited auto insurance coverage, but the amount of such coverage is not sufficient to cover all the damages he caused in a motor vehicle accident.

The only way to insure that you will be fairly compensated for all injuries and damages you may suffer in a motor vehicle accident caused by an uninsured driver or underinsured driver is to purchase a sufficient amount of uninsured motorist (UM) insurance coverage and underinsured motorist (UIM) insurance coverage on your own auto insurance policy.  Remember, UM and UIM coverage protects you.  Therefore, you should make sure you have it.  Your auto insurance carrier must allow you to purchase these coverages in an amount up to the amount of your liability coverage (liability coverage is coverage which protects you for damages you cause to others).  UM/UIM coverage is relatively inexpensive.  In order to adequately protect yourself, you should purchase UM/UIM coverage in an amount equal to you liability limits.  Indeed, there is no reason for you to purchase a higher amount of coverage to cover damages suffered by others than to cover damages suffered by you.

Another term you should be aware of when purchasing UM/UIM coverage is stacking.  Stacking allows you to exponentially increase your UM/UIM coverage by multiplying the number of vehicles insured on your policy by the stated UM/UIM policy limit amount.  In contrast, if you waive stacking, your UM/UIM policy limit is limited to the stated UM/UIM policy limit amount.  For example, if you have three vehicles insured on your policy, your stated UM/UIM per person limit is $100,000 and stacking applies, your UM/UIM coverage is $300,000 per person.  However, using this same example, had you waived stacking, your UM/UIM coverage would be limited to $100,000 per person.  The cost to stack UM/UIM benefits is relatively cheap so you should definitely purchase this coverage in order to adequately protect yourself.

You should periodically check your auto insurance coverage to make sure your coverages are adequate for your current situation in life.  If you have any questions regarding what various coverages are or what various coverage amounts should be considered, feel free to contact DLP for a free no obligation consultation.

John P. Finnerty, Esquire

When purchasing auto insurance, many consumers do not know what different coverages they need to protect themselves nor do they understand what benefits their policy can provide to them if they are injured in an accident.  At a minimum, all drivers should be aware of the difference between “full tort” coverage and “limited tort” coverage.

A motorist who selects ”full tort” coverage retains the right to recover economic (reimbursement for medical expenses and lost wages) and non-economic damages (pain and suffering) for injuries suffered in an accident against the driver who caused an accident (or his insurance company).  In contrast, subject to some exceptions that are beyond the scope of this article, a person who chooses “limited tort” coverage waives his/her right to recover non-economic damages (pain and suffering) for injuries suffered in an accident.

Most people do not think about the tort option they have selected on their auto insurance policy until after an accident occurs.  However, by that time it is too late.  You can not retroactively change your tort selection on your auto policy.  If you are injured in an auto accident and you have “limited tort” coverage in effect, you will not be able to recover any damages for the pain and suffering you endure against the driver who is at fault for causing the accident (or his insurance company).

The cost difference in policy premiums between “full tort” and “limited tort” is usually not very substantial.  Based on statistics regarding auto accidents, all drivers are exposed to a very real risk of being involved in and injured in a car accident.  Therefore, in order to protect yourself to ensure that you can recover damages for all of the injuries you may suffer in an auto accident, you should check your auto policy coverages today. If you do not currently have “full tort” coverage, call your insurance agent and instruct him/her to switch your coverage to “full tort” immediately.  It may be the smartest money you ever spent.

By: John P. Finnerty, Esq.