You were in an auto accident. The driver of the other car admits fault, but only has $25k liability coverage and your losses are $50k. You have $25k of underinsured motorist coverage under your own auto insurance policy.

So you next call your own insurance company to ask them to kick in $25k of underinsured motorist coverage under your own policy to you will be made whole ($25k from the bad driver’s insurance company + $25k from your own insurer per your underinsured motorist coverage). Do you get the extra $25k from your own insurer? In other words, does your underinsured motorist coverage “stack” on top of the bad driver’s $25k so that you get $50k of coverage?

NO, under current Oregon law the carrier providing under insured coverage gets to reduce the amount owed under underinsured coverage by the amount paid by the bad drivers’ insurance company under its liability coverage. Thus, the underinsured carrier pays zero under our scenario and you only get $25k, not $50k.

But that is about to change assuming Oregon Senate Bill 411 passes. Under the newly proposed law, Oregonians involved in an auto accident will be able to “stack” underinsured motorist coverage on top of the insurance limits of the driver fault… getting you $50k , rather than $25k in the above example. For more information: SMO PR_SB 411 PIP Stacking_02 24 2015