In many New Mexico car accident cases, courts are tasked with interpreting the written language of an insurance policy. This is because insurance policies are essentially written contracts, and are governed by contract law. However, due to the complex nature of the insurance business and the fact that all motorists must obtain car insurance, most motorists just quickly obtain a policy without really reading the fine print.
Insurance companies are businesses that operate for a profit. Thus, over time, insurance companies began including terms in their policies that limited the insured’s rights in certain circumstances. One very important issue that has come up time and again in New Mexico car accident cases is that of insurance stacking.
What Is Insurance Stacking and How Is It Beneficial to New Mexico Accident Victims?
Insurance stacking allows the insured to combine the insurance maximums of multiple covered vehicles in the event the damages sustained in an accident exceed the limit for one vehicle. Under New Mexico case law, there is a judicially-created stacking doctrine which requires an insurance company obtain a written waiver of coverage before writing a policy that does not allow stacking.