Stacked Vs. Unstacked Motorist Coverage

27.06.2022
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  1. Stacked Insurance:

    The term “stacking” refers to the ability to combine coverage limits for several automobiles. The highest amount your insurance will pay toward a covered claim is known as the coverage limit. As a result, merging several coverage limits into a single larger limit can provide more protection in the event of an automobile accident involving an uninsured or underinsured motorist. Uninsured and underinsured motorist coverage is often covered by stacked insurance.

    Uninsured/Underinsured motorist coverage: Uninsured and uninsured driver compensation is insurance coverage that helps cover medical costs and vehicle repair or replacement costs in the event of an uninsured or uninsured driver.

    • Uninsured motorist coverage: Some states may require Uninsured Motorist (UM) coverage on your car insurance. This is if you’re injured by an uninsured driver or a hit-and-run driver. In some states, UIM coverage is also available for a driver whose insurance limits won’t cover your damages. This kind of coverage is of two types:
      • Uninsured Motorist Bodily Injury Coverage (UMBI): If you are harmed by someone who does not have automobile insurance, UMBI coverage will usually cover the following expenses:
        • Medical expenses
        • Loss of income
        • Funeral expenses
        • Pain and suffering
      • Uninsured Motorist Property Damage Coverage (UMPD): Uninsured Motorist Property Damage offers coverage for repairs to your automobile if it is damaged by an uninsured motorist. If your auto policy doesn’t cover UMPD or collision, you’ll have to pay for the repairs yourself or file a claim in court against the at-fault motorist.
      • Underinsured motorist coverage: In certain states, underinsured motorist coverage is offered. This policy protects you against at-fault drivers who cause a car accident but don’t have enough insurance to cover your injuries or losses. UIM is divided into the same groups as UM: property damage and bodily injuries.
    • How does stack insurance work? Depending upon the state laws, the policies of stacked insurance work.
      • On a single automobile insurance coverage that covers two or more cars: On the same policy, you insure two automobiles. For each car, you have $20,000 in uninsured motorist bodily injury (UMBI) coverage. Your UMBI limits would be increased to $40,000 per accident if you stacked your coverage under that policy. So, if you were hit by a vehicle that didn’t have insurance, your insurer would help pay for your medical bills up to $40,000 after the accident.
      • Stacking Multiple Car Insurance Policies: Two car insurance plans have your name on them. One insurance is for a car you own, while the other is for a vehicle owned by a member of your family. The UMBI coverage maximum on your insurance is $30,000. The UMBI limit on your family member’s policy with your name on it is $25,000. If you opt to stack the two plans, your UMBI coverage maximum will rise to $55,000. So, if you were hit by an uninsured motorist, your insurer would cover up to $55,000 of your medical expenses after the accident.
  2. Unstacked Insurance:

    Your UM and UIM coverage limits for multiple cars are not combined if you have unstacked insurance.
    For example, if your insurance isn’t stacked, you’re more likely to have to pay for accident-related charges out of pocket. Let’s say you’re hurt when your automobile is hit by an uninsured motorist. You have unstacked UM insurance with a $25,000 limit. If your medical expenses total more than $25,000, you may have to pay the difference out of pocket. However, if you have stacked UM coverage, you might be able to use the UM coverage from other cars to help cover the balance of your medical costs.

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