Unstacked vs. Stacked Car Insurance: Which One Do You Need?

According to the Insurance Research Council (IRC), about 13% of all motorists on the road are uninsured; that’s approximately one out of every eight drivers that don’t have insurance.

You may not realize that you aren’t checking the box in your insurance policy for uninsured motorist or even underinsured motorist (UM) coverage.

Without either of these forms of additional motorist coverage, you leave yourself vulnerable to a slew of financial strains in the event of a motorist accident.

Both types of UM coverage are intended to protect you paying out of pocket for repairs and damages if the other driver in an accident isn’t insured or don't have sufficient motorist coverage.

What is Stacked Car Insurance?

Stacked car insurance refers to a car insurance policy that combines uninsured or underinsured motorist (UM/UIM) coverage limits for multiple vehicles.

Since you will be insuring more than one vehicle, you’re increasing your UM coverage to accommodate the amount of vehicles you own and have insured. This means you'll have more coverage in case of an accident with a UM or UIM. 

How Does Stacked Insurance Work?

You can opt for stacked insurance coverage either within your policy or across policies. Here is how stacked insurance works for both options.

Stacking Within One Policy

If you are stacking your UM coverage within policies, you combine the coverage limit set for multiple vehicles on that one policy. This means if you have two cars on one policy with a UM limit of $20,000, you may be able to stack the coverage limits for a combined UM coverage total of $40,000.

Stacking Across Policies

Let's say you are stacking your UM coverage for two vehicles. Each vehicle has a different policy, and on those individual policies they have $30,000 in UM coverage. You might be able to stack your coverage amounts to raise your limit to $60,000, even though you aren't under the same policy.

How Does Unstacked Car Insurance Work?

Unstacked coverage essentially means that you are not combining coverage limits. The amount of your coverage is the exact amount listed on your policy. 

This means if your policy has a limit of $70,000, then it is the maximum amount of coverage you will have available to you in the event of an accident.

If you only have one insured automobile in your household, then your only option is unstacked insurance coverage.

When to Stack or Unstack Your UM Coverage?

Typically, if you have only one car insured, you will opt for unstacked motorist coverage. If you have multiple cars insured, either in the same policy or multiple policies, you would opt for stacked motorist coverage.

Each state has varying coverage, and some states may not allow you to stack your UM coverage.

In Florida, you are allowed to stack your UM coverage within and across insurance policies.

Make sure you know the difference between stacked and unstacked insurance so you can protect yourself against uninsured or underinsured motorists on the road in case of an accident.

Contact Lowman Law Firm for your free policy evaluation so you can add or subtract coverage areas on your automobile insurance policy as necessary.