Understanding Stacked Auto Insurance Policies: What You Need To Know

Stacked auto insurance policies are a way to increase your uninsured and underinsured motorist coverage by combining (or stacking) the limits from each vehicle you own. This gives you a greater amount of financial protection if you get into an accident with a driver who only has their state's minimum liability coverage or none at all. There are two ways to stack your protection: insuring all of your cars on one policy or across policies with vehicles registered under your name but with different insurance providers.

Stacked insurance is available in 32 US states

Stacked insurance is a way to increase your coverage and protection if you are in an accident, particularly if the other driver is uninsured or underinsured. It is available in 32 US states, although insurance companies in these states are not always obliged to offer it.

Stacked insurance combines coverage limits from multiple policies a driver is on or from multiple cars on the same policy. This means that, if you are in an accident, you can collect from more than one car insurance policy to receive full payment for your injuries and property damage.

There are two types of stacked insurance: vertical stacking and horizontal stacking. Vertical stacking combines the coverage limits from multiple cars on the same policy. For example, if you own two cars, both insured on the same auto policy, with $15,000 of underinsured motorist coverage each, you can pay to stack the policies and receive $30,000 in coverage. Horizontal stacking combines the coverage limits from multiple policies. For example, if you have one policy with $50,000 worth of UM/UIM bodily injury coverage per person and another policy with $25,000 worth of coverage, you can collect up to $75,000 for any injury you suffer as a result of a collision with an uninsured or underinsured motorist.

It is important to note that not all types of coverage can be stacked. Only uninsured motorist (UM) or underinsured motorist (UIM) bodily injury coverage can be stacked. Property damage coverage cannot be stacked.

It only applies to uninsured motorist bodily injury coverage

Stacked insurance is a way to increase your coverage and protection if you are in an accident with an uninsured or underinsured driver. It is important to note that stacked insurance only applies to uninsured motorist bodily injury coverage. This means that it covers your injuries and your passengers' injuries if you are in an accident with an uninsured or underinsured driver. It does not cover property damage.

Uninsured motorist bodily injury coverage (UMBI) pays for medical bills, lost wages, pain and suffering, and funeral expenses for you and your passengers if you are in an accident with an uninsured driver. It is important to note that UMBI does not cover property damage to your vehicle. If you want to include property damage in your stacked insurance, you would need to include underinsured motorist property damage coverage (UIMPD).

Stacked insurance allows you to combine coverage limits from multiple policies or multiple vehicles to increase your total coverage amount. This means that if you have multiple insurance policies or multiple vehicles insured on the same policy, you can stack their uninsured motorist bodily injury coverage limits to increase your total coverage amount.

For example, if you have two cars insured on the same policy, each with $25,000 in UMBI coverage, you can stack those coverage limits to have a total of $50,000 in coverage. This gives you higher protection in the event of an accident with an uninsured or underinsured driver.

It is important to note that not all states allow stacked insurance, and the rules and regulations can vary by state. Additionally, even in states that allow stacked insurance, not all insurance companies offer it. Therefore, it is important to check with your insurance company and understand the laws in your state before assuming you have stacked insurance coverage.

You can stack insurance vertically or horizontally

Stacked insurance is a way to increase your coverage and protection if you are in an accident with an uninsured or underinsured driver. You can stack insurance vertically or horizontally.

Vertical stacking, or stacking within one policy, is when you have multiple cars on a single policy and you combine the total amount of uninsured coverage you have to make a claim for a single vehicle. For example, if each of your five cars has a UM/UIM limit of $50,000, you can choose to stack the policy on each car. If you have an accident in one of the cars with an uninsured motorist, you can file a $50,000 claim for every vehicle, for a total of $250,000.

Horizontal stacking, or stacking across multiple policies, is when you have more than one car insurance policy with the same company and you combine the total UM/UIM coverage to make a claim for damage to one vehicle. For example, if you have a $20,000 policy on one car and a separate $50,000 policy on another, and you get into an accident with a UM/UIM driver while driving either, you can file claims under both for a total of $70,000.

The ability to stack insurance depends on your insurance company, state, and existing coverage. Stacked insurance is allowed in 32 states to some degree, but not all insurance companies offer it, even in states where it is permitted.

Stacked insurance is more expensive than unstacked insurance

The higher premium for stacked insurance is due to the increased coverage limits it provides. By stacking insurance, you can effectively double or even triple the coverage limits of your uninsured or underinsured motorist protection. This can be especially useful if you are in a severe accident with high medical costs or if you live in an area with a high rate of uninsured drivers.

However, it's important to note that stacked insurance is not always more expensive than unstacked insurance. In some cases, you may be able to get the same level of coverage with stacked insurance at a lower cost. For example, if you have a $10,000 per person/$20,000 per accident limit across two cars with stacked insurance, you would get the same coverage as an unstacked $20,000/$40,000 policy. In this case, you should choose whichever option is cheaper.

Additionally, stacked insurance may not be available in all states or offered by all insurance companies. It is important to check the laws and regulations in your state, as well as the policies of your insurance provider, to understand if and how stacked insurance can be applied.

In summary, while stacked insurance generally comes with higher premiums than unstacked insurance, it offers increased coverage limits and better financial protection in the event of an accident with an uninsured or underinsured driver.

Stacked insurance is useful if you live in an area with a lot of uninsured drivers

Stacked insurance is a way to increase your uninsured motorist coverage by combining the bodily injury limits of each vehicle on your policy. This is especially helpful if an uninsured driver or someone without sufficient insurance hits your vehicle.

If you live in an area with a lot of uninsured drivers, stacked insurance can provide greater coverage and protection in the event of an accident. It increases your uninsured motorist (UM) and underinsured motorist (UIM) coverage, depending on the number of vehicles you own. Stacked insurance allows you to combine, or "stack", the limits for each vehicle, giving you a greater total amount of coverage.

For example, let's say you have two vehicles, each with $25,000 in uninsured motorist coverage. If you are in an accident with an uninsured driver and sustain $30,000 in damages, you would be responsible for the $5,000 difference with unstacked insurance. However, with stacked insurance, you could combine the coverage limits and receive up to $50,000, fully covering your expenses.

It's important to note that stacked insurance is not available in all states, and some insurers may not allow it even in states where it is permitted. Additionally, it typically costs more than unstacked insurance. However, if you live in an area with a high number of uninsured drivers, the added protection of stacked insurance may outweigh the higher premiums.

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