When it comes to car accidents, Arizona is an at-fault state. This means that the person responsible for a car accident is obliged to pay for all the resulting damages.
It’s a simple system, and it should work smoothly. In theory, a driver’s insurance company is there to cover these damages, keeping everyone involved covered and happy. Unfortunately, the world isn’t that simple. You could be hit by someone with bare minimum insurance or no insurance at all.
At the lowest level allowed by law, insurance benefits are relatively small. For bodily injury, they can pay the injured up to $25,000. They also cover only 15,000 dollars’ worth of property damage.
These numbers seem large until you consider how much your accident could cost. If you, for instance, suffer a catastrophic injury, $25,000 won’t scratch the surface of your medical expenses. If your car is totaled, $15,000 won’t be nearly enough to cover the damage.
To get around this, some people attempt “insurance stacking.” In this article, we will explain what stacking is and whether doing so is lawful in Arizona.
What Is Insurance Stacking?
Insurance stacking is where you buy multiple policies. They can be either within the same insurance company or from separate insurers. The goal is to make sure you are well covered in case of a crash with an uninsured or underinsured driver.
Insurance Stacking in Arizona
The state does allow you to stack policies. However, you can use only one policy at a time. If you are in a car accident, you must choose which policy to use, and you must be prepared to get benefits from only that policy.
Insurance Stacking as the Victim of a Car Wreck
Remember, if you were in a wreck through no fault of your own, you can rely on the other driver’s insurance company. By law, it must cover your expenses. If your expenses are high, and the other driver’s insurance benefits max out, you may begin using your insurer to cover your bills. Using your own insurance could be your only option if the other driver is completely uninsured.
If you’ve stacked your insurance, you can choose one of your policies to receive benefits, but you cannot benefit from multiple policies.
Luckily, you may be able to avoid the confusion of stacking altogether. Most insurance companies offer packages that include uninsured or underinsured motorists. These are quite helpful when the at-fault driver can’t pay for your damages.
Talk to an Attorney
If you have multiple insurance policies, and you’ve been in an accident, make sure to talk to an attorney before seeking benefits. At the best of times, dealing with insurance can be complicated. These complications only compound when there are multiple policies involved. Your lawyer can help you sift through the fine print to get the benefits you need as you recover from your wreck.
Trust our firm to help handle insurance issues in a car accident. Call us today at (602) 483-6114, or contact us online.