If you have more than one car, there may be a method for you to consolidate the liability coverage limits on all of your vehicles into one policy, which will protect you from financial loss in the event that an uninsured or underinsured driver causes you an accident. You are able to accomplish this by stacking multiple policies into one. Find out more about the coverage offered by stacked auto insurance and how it stacks up against the coverage offered by unstacked, or conventional, motor insurance.
What is the Main Distinction Between Stacked and Unstacked Insurance Policies?
Stacked Insurance
Provides more comprehensive coverage More expensive It's against the law in every state.Unstacked Insurance
Provides consistent protection Less expensive Accessible in each and every stateComprehending the Differences Between UM and UIM Coverage
To begin, if you own and insure many vehicles, you have the opportunity to purchase stacked insurance policies. If you have stacked coverage, it means that in the event of a costly accident, you will still be protected for twice the amount that would be provided by a single policy on its own. This is true even if the other driver does not have insurance. If the driver who caused the collision is not insured, uninsured motorist (UM) coverage will pay the amount that the other driver's insurance company would have been responsible for paying. A UM coverage will cover any bodily injuries, and, depending on the specifics of the policy, it may also cover any property damage. Your protection against other drivers on the road is ensured by having underinsured motorist (UIM) coverage. UIM coverage will protect you from the financial impact of an accident caused by another party that results in more extensive damage than the latter's insurance policy will pay for. Research from the year 2021 indicates that around one out of every eight drivers does not have automobile insurance. Your protection against having to pay the price is provided by uninsured motorist coverage. The amount of damage that will be covered by the policy is subject to predetermined caps, just like any other type of insurance coverage. This is where stacked coverage comes into play: if you insure multiple vehicles, you can "stack" the coverage limits so that they are significantly higher for any one accident than they would be if you only insured one vehicle. Stacking allows you to increase your coverage limits beyond what they would be if you had only insured one vehicle. Insurance that is not piled is practically the same as a standard auto insurance coverage. There are many different types of auto insurance policies available, but if you don't stack your coverage, your policy is considered to be unstacked. Only those things that are specified on the declarations page of your policy are included in your coverage. In the event that you are involved in an accident, the level of coverage provided by your policy will not be as great as it would have been if you had a stacked policy. Additionally, stacking insurance will not be a possibility for you if you simply own and cover a single vehicle. This indicates that you will have a standard auto insurance coverage, sometimes known as an unstacked policy.Cost
Just like with any other type of insurance policy; the premiums will go up proportionally to the amount of coverage that is included in the plan. Due to the fact that you are double your coverage limit when you stack your uninsured motorist policy, the cost of doing so is higher than the cost of acquiring separate coverage that is not stacked. On the other hand, the premium for a conventional or unstacked auto insurance policy will be less expensive than the premium for a stacked one. Keep in mind, though, that if you end up in an accident with a motorist who is either uninsured or underinsured, you may end up having to pay extra out of pocket for the damages.Availability
In some states, the number of policies that can be stacked together or even the capacity to do so at all may be restricted. It is important that you discuss this matter with an experienced insurance agent because it might become complicated if other members of your family are the ones operating the motor vehicle. You should have no trouble acquiring standard or unstacked auto insurance from a number of different insurance firms, regardless of the location in which you now reside.An Illustration of the Operation of Stacked Insurance
Consider the following scenario, in which it might be significant. Imagine that you are not to blame for an accident that you were involved in. Because the other driver who was responsible for the accident does not have insurance and the amount of damage done to you or your car is greater than the uninsured motorist coverage you have acquired for one of your vehicles, you will have to pay for the remaining damages out of pocket. If you have uninsured motorist coverage or underinsured motorist coverage on more than one car, you will be protected up to a predetermined maximum on each of those vehicles. But what happens if you are involved in an accident that results in damage to the tune of $150,000, but your policy maximum is only $100,000? If you just own one vehicle and have uninsured motorist coverage on that vehicle, you are financially responsible for the damages caused by the other driver. You are similarly out of luck if you own two vehicles but only have single-vehicle coverage for each of them. If you have stacked your auto insurance coverage, you will be able to "borrow" from the coverage of the second vehicle without having to pay any more money out of pocket if you do so.Which Is the Best Option for You?
If you want to boost the amount of coverage provided by your uninsured and underinsured motorist insurance, then stacking coverage may be the best option for you to consider. Naturally, the amount of coverage you have will directly correlate to the cost of your insurance policy. If you choose to stack your insurance coverage, however, you are not doing it with the best-case scenario in mind; rather, you are doing so with the worst-case scenario in mind. Your stacked insurance can assist protect you from having to pay any out-of-pocket expenses in the event that you are involved in a collision with a driver who is either uninsured or has inadequate coverage. If you have a lower level of anxiety about the possibility of an incident like this occurring, or if you just own and insure one vehicle, then a standard auto insurance policy that does not stack coverage may be the best option for you.The Crux of the Matter
Auto insurance is essential, regardless of whether you choose stacked or unstacked coverage for your policy. Talk to your insurance agent if you are unsure which option is best for you in the event that you are unsure which option is best for you. If you insure many vehicles, they may be able to assist you in evaluating whether paying for a stacked policy makes sense for you.