Auto Insurance: Stacked Vs. Non-Stacked, What's The Difference?

Stacked and non-stacked auto insurance options refer to uninsured/underinsured motorist coverage. Stacked insurance combines the coverage limits for multiple vehicles or policies, increasing the maximum payout for a claim. Non-stacked insurance, on the other hand, refers to coverage limits that cannot be combined across vehicles or policies. Stacked insurance provides better financial protection against uninsured motorists but usually comes with a higher premium. Non-stacked insurance is typically cheaper but offers lower coverage limits.

Stacked insurance is more expensive but provides greater coverage and protection

Stacked insurance is a great way to safeguard your finances in the event of an accident, especially if you have multiple cars or insurance policies. It combines the uninsured/underinsured motorist coverage limits for multiple vehicles or policies, increasing the maximum amount an insurer will pay for a claim.

While this provides greater coverage and protection, it comes at a cost. Stacked insurance is typically more expensive than unstacked insurance because it offers higher coverage limits. This means you will pay higher premiums for stacked insurance. However, the difference in premiums between stacked and unstacked coverage is generally small, often less than $100, and it could save you money if you're in a severe accident.

The advantage of stacked insurance is that it offers more financial protection against uninsured motorists. If you are in an accident with an uninsured or underinsured driver, you will have a higher coverage limit and will need to pay less out of pocket. This is especially beneficial if you live in a state with a high percentage of uninsured drivers or if you have multiple vehicles insured under the same policy or multiple policies.

In summary, while stacked insurance is more expensive, it provides greater coverage and protection, making it a worthwhile option for those with multiple vehicles or policies, or those living in areas with a high number of uninsured drivers.

Stacked insurance is especially useful if you have multiple cars or insurance policies

Stacked insurance is a great way to safeguard your finances in the event of an accident, especially if you have multiple cars or insurance policies. It increases your coverage limits, reducing the amount you have to pay out of pocket for an uninsured motorist claim.

Stacked insurance allows you to combine policy limits from multiple vehicles or policies. This means that if you insure multiple vehicles, you can add the policy limits from each vehicle together to get a higher limit. For example, if you insure two vehicles on the same policy with a coverage limit of $100,000 each, and you opt for stacked insurance, your insurance company will pay up to $200,000 for accident-related medical bills if you are in an accident with an uninsured or underinsured driver.

Stacking insurance is particularly useful if you have multiple cars because it provides greater coverage after an accident. It is also helpful if you are in an accident with an uninsured or underinsured driver, as it increases the amount your insurance company will pay out. Stacked insurance can be combined either within one policy (vertical stacking) or across multiple policies (horizontal stacking).

However, it's important to note that stacked insurance is not available in all states and may cost more than unstacked insurance. Additionally, it only applies to uninsured and underinsured motorist (UI/UIM) coverage for bodily injury, and not for property damage.

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

Stacked insurance is a great way to safeguard your finances in the case of an accident, especially if you live in a state with a high percentage of uninsured drivers. Accidents can be costly, and if you get into an accident with an uninsured driver, you could be forced to pay for repairs and medical bills out of pocket.

Stacked insurance allows you to combine policy limits from multiple vehicles, which can provide greater coverage after an accident. This is especially helpful if an uninsured driver or someone without enough insurance hits your vehicle. Stacked insurance is a way to get a higher uninsured motorist payout because you can pull from multiple vehicles in states that allow it.

There are two ways to stack car insurance: vertically (within one policy) or horizontally (across multiple policies). For example, let's say you own two cars covered under the same auto policy, each with $15,000 of UM coverage. If you vertically stack policies, you'll have $30,000 in combined UM coverage.

Now consider stacking horizontally across multiple policies. 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 an uninsured driver while driving either, you can file claims under both for a total of $70,000.

Stacked insurance is typically more expensive than unstacked insurance, but it can be worth the extra cost if you live in a state with a high percentage of uninsured drivers. For example, Mississippi has the highest percentage of uninsured drivers at 29.4%, while New Jersey has the lowest percentage at 3.1%. If you live in a state with many uninsured motorists, stacked insurance can help cover the cost if you get into an accident.

Stacked insurance is not available in all states or from all insurance providers

There are 32 states that allow some form of stacking insurance, but even in those states, not all insurance providers are required to offer it. Certain states allow insurers to deny customers the ability to stack coverage, as long as they are clear and unambiguous in the policy. For example, Arkansas and Ohio allow insurance companies to opt-out of offering stacked insurance, while Pennsylvania and Florida allow drivers to waive the ability to stack their insurance to lower their rates.

If you live in a state that allows stacking, most insurers that operate in that state will offer it, as it would be uncompetitive not to. However, the insurer can cap maximum policy limits. For instance, a company in a state that allows stacking may set their maximum policy limit at $100,000 per person and $300,000 per accident.

It's important to note that stacking insurance is also limited to coverage for injuries. You cannot stack coverage for property damage.

Stacked insurance can be done vertically (within one policy) or horizontally (across multiple policies)

Stacked insurance is a way to increase your uninsured and underinsured motorist coverage by combining the limits from each vehicle you own. This results in greater financial protection if you get into an accident with a driver who has insufficient insurance or none at all.

There are two ways to stack your protection:

Vertical Stacking (Intrapolicy Stacking)

Vertical stacking involves combining multiple coverage limits from a single insurance policy to get a higher uninsured motorist (UM) and underinsured motorist (UIM) limit. This is possible if you have at least two vehicles on the same policy. In vertical stacking, you multiply your UM and UIM bodily injury limits by the number of vehicles on your policy.

Horizontal Stacking (Interpolicy Stacking)

Horizontal stacking, on the other hand, allows you to stack coverage across multiple vehicles insured under different policies. This typically applies only to policies under a single company. For instance, if you have insurance for your own vehicle and your name is also on your parent's insurance policy, you can stack these policies for a higher coverage limit in the event of an accident with an uninsured driver.

The availability of stacked insurance and the type of stacking allowed (vertical, horizontal, or both) vary from state to state.

Frequently asked questions