Is Stacking Insurance Policies Possible After a New York Passenger Car Accident?

Being involved in a car accident is stressful enough without the added frustration of discovering that the at-fault driver’s insurance coverage is insufficient to pay for your medical bills and other losses. In many states, accident victims can combine, or “stack,” multiple insurance policies to increase the total amount of coverage available after a crash. However, New York law takes a very different approach. Careful consideration of how these rules work and what alternatives exist is essential for anyone seeking full compensation after a serious collision.

Recovering maximum compensation requires a strategic approach that makes full use of Supplementary Uninsured/Underinsured Motorist (SUM) coverage and other available legal protections. An experienced Brooklyn car accident lawyer can guide you through the details of your claim, identify every potential source of recovery, and ensure that no coverage is left unused. 

If you or someone you love has been injured by an uninsured or underinsured driver, contact Kucher Law Group at (929) 563-6780 for a free consultation. Our team can help you understand your rights and pursue the compensation you deserve.

What is Insurance Stacking?

Before examining New York’s specific stance on stacking, it’s important to understand how the concept works in the many states that do allow it. Insurance stacking refers to the practice of combining coverage limits from multiple insurance sources to increase the total amount available to an accident victim, usually after a collision involving an uninsured or underinsured driver.

Stacking applies almost exclusively to Uninsured/Underinsured Motorist (UM/UIM) bodily injury coverage. It does not extend to property damage or liability coverage under a policy. Essentially, stacking gives insured individuals access to a larger pool of protection by combining coverages, either within a single policy or across multiple policies.

There are two main forms of insurance stacking: vertical (intra-policy) and horizontal (inter-policy) stacking.

• Vertical Stacking (Intra-Policy): Vertical stacking occurs when a single insurance policy covers more than one vehicle. In states that permit it, the UM/UIM coverage limits for each vehicle on the same policy can be combined to cover injuries sustained in an accident involving just one of those vehicles.
• Horizontal Stacking (Inter-Policy): Horizontal stacking, also called inter-policy stacking, allows a policyholder to combine the UM/UIM coverage limits from two or more separate insurance policies. This usually applies when the injured individual is:
  • A named insured on more than one policy, or
  • A named insured on their own policy and qualifies as an insured under a resident relative’s policy.

The New York Answer: An Explicit “No” to Stacking

While the concept of stacking offers a straightforward way to increase coverage in many jurisdictions, the answer in New York is unambiguous: stacking of Uninsured/Underinsured Motorist (UM/UIM) or Supplementary Uninsured/Underinsured Motorist (SUM) coverage is explicitly prohibited by law.

This is not a matter of judicial interpretation or insurance company policy; it is a clear mandate codified in state regulations. The controlling authority is found in the New York Codes, Rules and Regulations (NYCRR) Title 11, Section 60-2.3, which prescribes the standard language for every SUM endorsement in the state. Condition 6 of this mandatory endorsement, titled “Non-Stacking,” states plainly:

“Regardless of the number of vehicles involved, persons covered, claims made, motor vehicles or premiums shown in this policy, or premium paid, the limits, whether for UM coverage or SUM coverage, shall never be added together or combined for two or more motor vehicles to determine the extent of insurance coverage available to an insured who was injured in the same accident.”

The practical implication of this rule is absolute. An injured person cannot add the $100,000 SUM limit from their own car’s policy to the $250,000 SUM limit from a resident relative’s policy to create a $350,000 pool of available funds. The law simply does not permit this kind of aggregation.

This anti-stacking rule is a deliberate public policy decision. Insurance regulation inherently involves balancing the goal of compensating injured victims against the need to maintain affordable insurance premiums for the public. A system that allows stacking significantly increases the potential financial exposure for insurance companies, as the total payout in a multi-car or multi-policy household could be multiplied several times over. This heightened risk would inevitably lead to higher premiums for all New York drivers purchasing SUM coverage.

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New York’s Alternative: Maximizing Recovery Through SUM and “Priority of Coverage

While New York law closes the door on stacking, it opens another, more complex one: a system built around high-limit Supplementary Uninsured/Underinsured Motorist (SUM) coverage and a strict hierarchy for accessing it. Understanding this system is the true key to maximizing financial recovery after being injured by a driver with inadequate insurance.

Understanding SUM Coverage

SUM coverage is New York’s specific, enhanced version of the UM/UIM protection found in other states. It is a crucial financial safety net that every driver should carry.

Under New York Insurance Law § 3420(f)(2), insurance companies are required to offer SUM coverage in amounts up to the policyholder’s own bodily injury liability limits. For example, if a driver carries liability coverage of $250,000 per person and $500,000 per accident, their insurer must offer the option to purchase SUM coverage up to those same high limits. Recognizing its importance, recent legislative changes have moved toward making SUM coverage automatic unless the policyholder actively rejects it in writing.

The primary function of SUM coverage is to act as “gap” coverage. It bridges the financial difference between the at-fault driver’s low liability limits and the true extent of the victim’s damages, up to the limit of the victim’s own SUM policy. This operates through an offset mechanism.

Example:

If an injured driver has a $250,000 SUM policy and is hit by a driver with only a $25,000 liability limit, the at-fault driver’s insurer pays its $25,000. The injured person can then claim up to an additional $225,000 ($250,000 minus $25,000) from their own SUM policy.

This protection is remarkably broad. SUM coverage typically protects the named insured, their spouse, and resident relatives living in the same household. The coverage follows the person, not just the vehicle. This means that a resident relative is protected even if they are injured as a pedestrian, bicyclist, or passenger in someone else’s car.

The “Priority of Coverage” Rule Explained

When an injured person has access to more than one policy providing SUM coverage, such as the policy on the car they were riding in, their own personal auto policy, and a policy belonging to a resident relative, New York law does not allow the limits to be added together. Instead, it imposes a strict Priority of Coverage rule to determine both the order of payment and the total maximum recovery.

This doctrine, detailed in 11 NYCRR 60-2.3, creates a three-tiered hierarchy for payment:

• First Priority (Primary): The SUM policy covering the vehicle that the injured person was occupying at the time of the accident. This policy must pay its benefits first.
• Second Priority: Any policy under which the injured person is a named insured, such as their own personal auto policy if they were a passenger in someone else’s car.
• Third Priority: Any policy under which the injured person qualifies as an insured but is not the named insured, such as the policy of a resident relative like a parent or spouse.

The most critical component of this rule is the cap on recovery. The total amount an injured person can recover from all SUM policies combined cannot exceed the highest single SUM limit available under any one of those policies. The system is structured to let the claimant move up through the layers of available coverage until they reach the highest limit, but never beyond it.

How the Rule Works

Imagine Mark, who is seriously injured while riding as a passenger in a coworker’s vehicle. The coworker/at-fault driver has only $100,000 in liability coverage, and Mark’s total damages are valued at $500,000.

The available insurance policies are as follows:

• The coworker/at-fault driver’s policy (primary) pays first, but only up to its SUM limit minus the at-fault driver’s liability payment.
• Mark’s own $250,000 SUM policy then contributes up to its limit, offset by the amount already recovered from the primary policy.
• Finally, Mark’s mother’s $500,000 SUM policy contributes only the difference needed to reach the highest single SUM limit—$500,000.

Under New York’s Priority-of-Coverage rule, Mark’s total recovery cannot exceed that $500,000 cap, even though multiple policies contribute.

Following the Priority of Coverage rule:

• The coworker/at-fault driver’s $100,000 policy pays first because it covers the vehicle Mark was in.
• Mark’s personal $250,000 policy pays next, adding enough to reach its own limit. Since $100,000 has already been paid, it contributes $150,000 more.
• Mark’s mother’s $500,000 policy then pays the difference needed to reach the highest available limit, which is $500,000. It contributes $250,000 more to complete the recovery process.

Although multiple policies contribute to the total recovery, the combined amount cannot exceed $500,000, which is the highest SUM limit available among the three policies.

Why Experienced Legal Guidance Is Essential in SUM Claims

The complex nature of New York’s Supplementary Uninsured/Underinsured Motorist (SUM) laws, combined with the strict procedural requirements involved, makes pursuing a claim challenging for anyone unfamiliar with the process. Insurance carriers are highly experienced in navigating these technicalities and may use them to minimize or deny otherwise valid claims. 

Common Pitfalls That Can Jeopardize a SUM Claim

The path to recovering SUM benefits is filled with potential missteps that can seriously harm a claim if handled incorrectly. Some of the most critical include:

Strict Notice Requirements

SUM policies require that claimants provide written notice of their intent to pursue benefits “as soon as practicable.” This is not a fixed deadline like a statute of limitations. Insurers may dispute the timeliness of notice, but courts evaluate this under a reasonableness and prejudice standard. If the insurer had timely notice of the accident and cannot show prejudice, coverage may still apply even when SUM notice is delayed.

The Exhaustion Prerequisite

Before collecting SUM benefits, the claimant must exhaust the bodily-injury liability limits of any one person who is legally liable for the accident, either through settlement or judgment, and must comply with the policy’s ‘Release or Advance’ procedure to protect the insurer’s subrogation rights. This requirement demands careful strategy. An attorney must negotiate with the at-fault driver’s insurer to obtain the necessary release language that protects the claimant’s right to pursue SUM coverage afterward. A single misstep in wording or timing can result in forfeiture of additional compensation.

Identifying All Sources of Coverage

Many accident victims are unaware of every policy that may apply to their case. Skilled attorneys conduct thorough investigations to uncover all possible avenues for recovery, including policies held by resident relatives. Locating these additional sources of coverage can make a substantial difference in the total amount available to the injured person.

Key Issue	Legal Requirement	Importance of Legal Guidance
Strict Notice Requirements	Claimants must give written notice of their intent to pursue SUM benefits as soon as practicable. Timeliness is judged on reasonableness and whether the insurer was prejudiced.	An attorney ensures notice is provided correctly and on time to help prevent denial of coverage.
The Exhaustion Prerequisite	Claimants must first exhaust the at-fault party’s bodily-injury liability limits and follow procedures protecting the insurer’s subrogation rights.	Legal counsel helps draft settlement language and releases to preserve SUM eligibility.
Identifying All Sources of Coverage	Multiple insurance policies, including those held by resident relatives, may provide additional coverage.	Attorneys can identify all applicable policies and maximize recovery potential.

The Importance of Legal Help  and Case Law

Handling SUM law requires more than just reading the statutes. New York’s insurance regulations are interpreted continuously through evolving case law, and each new decision can influence how claims are handled. In Matter of State Farm v. Fitzgerald (25 NY3d 799 [2015]), the Court of Appeals held that a police vehicle is not a ‘motor vehicle’ for SUM purposes, meaning the injured officer could not recover under that SUM policy.” The fact that such a fundamental question reached the courts illustrates how nuanced this area of law can be.

Attorneys who regularly handle SUM cases stay informed of these judicial interpretations and know how to apply them effectively to protect their clients. Without this legal experience, even a valid claim can be delayed, reduced, or denied outright.

Protecting Your Right to Full Compensation

While the state’s anti-stacking rules may seem restrictive, the Priority of Coverage system and high-limit Supplementary Uninsured/Underinsured Motorist (SUM) coverage offer powerful tools for maximizing recovery when properly applied. Knowing how to use these protections can make the difference between partial and full compensation after a serious crash.

If you have been injured by an uninsured or underinsured driver, you do not have to face the insurance process alone. The experienced attorneys at Kucher Law Group can review your policy, identify all available coverage, and fight for the full recovery you deserve. Call (929) 563-6780 today to schedule a free consultation and take the first step toward securing your financial future after a New York car accident.