Stacking Auto Insurance: Is It Worth The Extra Cost?

Stacked auto insurance is a way to increase your coverage and protection if you are in an accident with an uninsured or underinsured driver. It is especially helpful if you need insurance for more than one car, as it can provide greater coverage after an accident. However, it is not available in all states and is generally more expensive than unstacked insurance. So, should you stack auto insurance?

Stacked insurance is more expensive but provides greater protection

Stacked insurance is a way to increase your coverage and protection if you are in an accident, especially with an uninsured or underinsured driver. It combines coverage limits from multiple policies that a driver is on or from multiple cars on the same policy. This means that if you have multiple cars, you can combine the policy limits from each vehicle to get a higher limit.

However, stacked insurance is more expensive than unstacked insurance. This is because it provides greater protection and a higher payout if you get into an accident with an uninsured motorist. Stacked insurance is worth considering if you live in a state with a lot of uninsured motorists.

For example, let's say you insure two vehicles on the same auto insurance policy, and they each have a coverage limit of $100,000. If an uninsured or underinsured driver hits you, your insurance company will pay up to $200,000 for accident-related medical bills. Stacked insurance can provide greater financial protection in the event of an accident, as you will have higher coverage limits and will not have to pay as much out of pocket.

While stacked insurance is more expensive, the difference in premiums between stacked and unstacked coverage is relatively small, and it could save you money if you are in an accident. It is important to evaluate your own situation and the percentage of uninsured drivers in your state to determine if stacked insurance is worth the extra cost for the increased protection it provides.

Stacked insurance is especially useful if you live in a state with a high percentage of uninsured drivers

Stacked insurance is a way to increase your uninsured and underinsured motorist coverage by combining (or stacking) the limits from each vehicle you own. If you have multiple cars or insurance policies, you can use stacked insurance to increase your uninsured motorist bodily injury coverage. Stacked insurance is especially useful if you live in a state with a high percentage of uninsured drivers, as it can provide greater coverage after an accident.

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 allows you to combine policy limits from multiple vehicles. If you need insurance for more than one car, it can provide greater coverage after an accident, especially if an uninsured driver or someone without much insurance hits your vehicle.

However, it's important to note that stacked insurance costs more than unstacked insurance. It's also not available on all types of coverage, and not all states allow it. Stacked insurance is a way to raise your coverage and protection if you are in an accident with an uninsured or underinsured driver. Only uninsured motorist (UM) or underinsured motorist (UIM) bodily injury coverage can be stacked. You cannot stack UM and UIM property damage coverage.

Before deciding to stack your insurance coverage, evaluate whether it's worth the extra cost. If you're only insuring one vehicle, stacked insurance coverage is likely to be expensive. However, if you own multiple vehicles or have your name on multiple policies, stacking insurance coverage could pay off in the event of an accident with an uninsured motorist.

Stacked insurance is not available in all states

Some states allow both types of stacking, while others only allow vertical stacking (stacking within one policy). A few states have unique rules: for example, Pennsylvania and Florida allow drivers to waive the ability to stack their insurance to lower their rates, and Wisconsin limits stacking to only three vehicles.

If you're considering stacked insurance, it's important to check the laws in your state and review your policy carefully. Not all insurers offer stacked insurance, even in states where it is allowed. In some cases, insurers can add anti-stacking language into policies. However, some states prohibit "anti-stacking language" in insurance policies.

To summarise, the availability of stacked insurance depends on your state, insurer, and the type of stacking you require. It's essential to understand the laws and regulations in your state and to consult with your insurance provider to determine if stacked insurance is an option for you.

Stacked insurance is not offered by all insurance companies

In some states, insurers are not required to offer stacked insurance. Certain states allow insurance companies to include anti-stacking language in their policies, meaning customers cannot combine coverage from multiple policies or vehicles. Arkansas and Ohio, for example, permit insurers to deny customers the ability to stack coverage, as long as this is clearly stated in the policy.

If you are considering stacked insurance, it is important to check with your insurance provider to see if it is available to you.

Stacked insurance can be applied 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. Stacking insurance combines coverage limits from either multiple policies a driver is on or from multiple cars on the same policy.

There are two ways to stack insurance: vertical stacking and horizontal stacking. Vertical stacking, also known as intrapolicy stacking, combines coverage for multiple vehicles insured under the same policy. Horizontal stacking, also known as interpolicy stacking, allows policyholders to stack coverage across multiple vehicles insured under multiple policies.

For example, let's say you own two cars, both insured on the same auto policy, with $15,000 of underinsured motorist coverage. If you pay to stack the policies, you'll have $30,000 in potential coverage. This is an example of vertical stacking.

Now, let's say you insure those same two vehicles on two different policies, each with a coverage limit of $25,000. If an uninsured or underinsured driver hits you, your insurance company will pay up to $50,000 for accident-related medical bills. This is an example of horizontal stacking.

It's important to note that not all states allow insurance stacking, and some states only allow vertical or horizontal stacking. Additionally, stacked insurance is typically more expensive than unstacked insurance.

Frequently asked questions