Superior Court Confirms That Auto Carriers Can Charge a Premium For Stacked Coverage on a Single Vehicle Policy

In the case of Higgins v. Nationwide Affin. Ins. Co., No. 752 EDA 2023 (Pa. Super. Dec. 26, 2024 Stabile, J., Dubow, J. and Sullivan, J.) (Op. by Sullivan, J.), the Pennsylvania Superior Court affirmed the entry of summary judgment in favor of the Defendant carrier in a case where a class of Plaintiffs complained that they were charged a premium for stacked coverage on a single vehicle policy.

The Pennsylvania Superior Court found that there was no unjust enrichment or fraud arising from the carrier charging a premium for stacked coverage benefits to a single-vehicle policy for an insured who lived in a household with no other auto policy as there were circumstances that could arise where the single-vehicle policy holder could obtain stacked coverage.

The court cited to other previous Pennsylvania decisions in which it had been held that a single-vehicle policy holder could benefit from stacking where the individual is injured in a vehicle other than his or her own insured vehicle and is an insured under the non-owned vehicle’s policy, which also has uninsured or underinsured motorist coverage, such as an employer’s vehicle. Other additional scenarios were noted in the Opinion under which a single-vehicle policy holder may secure a benefit from stacking of UM/UIM coverages.

Accordingly, the Superior Court affirmed the trial court’s ruling granting summary judgment in favor of the carrier.

Anyone wishing to review a copy of this decision may click this LINK.


Source: The Legal Intelligencer State Appellate Case Alert, www.Law.com (Jan. 14, 2025).

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