Stacking Insurance coverage waivers, if already signed,not necessary when acquiring new car

In the case of Sackett v. Nationwide, the insureds (Sacketts) owned and insured two vehicles in 1998 where they rejected stacked limits for uninsured/underinsured motorist coverage by executing the appropriate waivers as required by Section 1738 of the Pennsylvania Motor Vehicle Financial Responsibility Act (MVFRA). Later, in 2000, they acquired a third car, but the insurance carrier (Nationwide) did not give them the opportunity to waive stacked coverage again.

After initially agreeing with the insureds, the Supreme Court granted reargument and invited the Insurance Commissioner to file a “friend of the Court” brief on the issue.

Upon reconsideration, the Pennsylvania Supreme Court held that when a car is added to a pre-existing multi-vehicle policy, the MVFRA does not require new stacking waivers to permit waiver of increased insurance coverage.

Consumers should be aware of these constantly changing interpretations of the law and review their automobile insurance policies on an annual basis or anytime there is a change in circumstances such as the addition of a new driver, the death or removal of an old one, or the purchase of a new vehicle.