Auto insurance, with all of its many options for coverage and policy limits to choose from, can become quite confusing. Many individuals report simply wanting to click “Buy” and be done with their browsing. However, it can pay off to take your time comparing policies to ensure that your assets are covered and that you save money in the long run. Additionally, if you are involved in a car accident, having stacked car insurance vs. unstacked can drastically change your bodily injury coverage.
Have you been involved in an auto collision? Contact Ali Awad, ‘The CEO Lawyer’ and his team of experienced personal injury attorneys at the CEO Lawyer Personal Injury Law Firm by calling (833) 254-2923 or contacting us online to receive your free and confidential case evaluation. Attorney Ali Awad, ‘the CEO Lawyer,’ established the CEO Lawyer Personal Injury Law Firm and quickly turned it into one of the fastest-growing law firms in the country. If we take your case, you won’t pay anything until we win.
What Is Stacked Uninsured Motorist Coverage?
Many consumers may be unfamiliar with what stacked vs. unstacked uninsured motorist coverage is. Stacked insurance allows you to combine uninsured and underinsured bodily injury limits between multiple vehicles you own. For example, if you own two cars with UMBI limits of $25k per person and $50k per collision on each car, you may use combined limits of $50k/100k for UMBI claims. Although only some states allow you to stack policy limits from different vehicles together to get a higher limit, if you are named on the policy of each car, you may be able to stack coverage to provide you with more coverage. However, it is essential to note that stacking insurance only applies to underinsured or uninsured motorist coverage and helps protect you if you are involved in an accident with a driver who doesn’t have adequate insurance coverage.
While there are two kinds of UI/UIM coverage, including property damage coverage and bodily injury coverage, uninsured motorist stacking will only apply to bodily injury coverage (UMBI). Unfortunately, you will not be able to stack property damage coverage or other auto insurance coverage such as comprehensive or collision coverage. Your UI/UIM policy coverage limits will match your bodily injury coverage limits by default. As you cannot raise UI/UIM policy limits by itself, uninsured motorist stacking is a way to get higher payouts across multiple vehicles or policies.
What Is Unstacked Insurance?
Unstacked insurance is standard coverage that does not combine coverages across policies or vehicles. It is vehicle-specific standard coverage limits. Unstacked insurance is the default in many states.
How Does Stacked Insurance Work?
Insurers allow UMBI stacking to assist with covering significant medical expenses accident injury victims may incur. All liability and UMBI coverage will come with two limits – a per person coverage limit and a per accident coverage limit. Your UMBI coverage will match the liability coverage limit you have by default. When stacking UMBI coverages, you may either combine coverage policy limits from two cars or for vehicles on separate policies. For example, suppose you have two cars under the same car insurance policy with a total coverage limit of $50,000 per person. Suppose you combine the coverage of the two covered vehicles. In that case, you may receive up to $100,000 per person of additional UMBI coverage up to the policy limit if a driver injures you with inadequate car insurance coverage. Moreover, if you have three vehicles, each with its insurance policy and a $50,000 coverage limit, you may be able to receive up to $150,000 for medical expenses caused by the accident.
Stack Within One Policy Or Across Policies
As was previously described, you may be able to stack coverages across one policy or across multiple insurance policies. If you have multiple vehicles on one insurance policy, you may be able to combine UMBI coverage between cars. Typically, when receiving a multi-vehicle auto insurance quote, you will see what your stacking options look like during the quote if you live in a state where stacking is allowed. Alternatively, if you have vehicles on different policies, but you are the policy owner of each policy, and they are all through the same insurer, you may be able to stack coverages. However, stacking may cost slightly more if the vehicles are on different policies. Remember that you will not be able to stack policies from other insurance companies or policies owned by multiple people.
Why Stack Insurance Coverage?
Motorists may decide to stack insurance coverage to receive more uninsured or underinsured motorist bodily injury coverage if they are injured in an accident caused by an underinsured or uninsured driver to assist with paying medical expenses. For example, suppose you are the driver and paying for UMBI insurance for four vehicles. In that case, it makes sense that you should have access to all of the UMBI insurance you are paying for should you need it if you become injured in an accident that the at-fault driver does not adequately cover. If you pay $50,000 of UMBI coverage for four vehicles, if you stack insurance coverage, you will have access to up to $200,000 of coverage for your medical expenses. The privilege to stack your insurance coverages across multiple vehicles or multiple policies will cost more than unstacked insurance. However, raising the UMBI to a higher coverage limit for each vehicle will not cost as much. Unfortunately, suppose you live in a state that does not allow uninsured motorist coverage stacking. In that case, you will be forced to raise the coverage limit of each vehicle/policy to receive more coverage.
Where Can You Get Stacked Insurance?
You may not have heard of stacked insurance coverage because only a minority of states allow uninsured motorist policy stacking. However, keep in mind that some insurance companies may conceal this option to discourage drivers from utilizing this benefit in the states that allow stacking. In addition, many states will not allow stacking or will not have legislation on the regulation of such practices. In states that do not enable anti-stacking provisions, insurance companies are required to offer stacked insurance coverage.
Personal Injury Attorney
Has a negligent driver injured you or a loved one? If so, do not wait to contact the experienced car accident personal injuries attorneys at the CEO Lawyer Personal Injury Law Firm. Call us today at (833) 254-2923 or contact us online to receive your free and confidential case evaluation
If you have been injured due to another driver’s negligence, it should not be your burden to be responsible for your damages. Contact Ali Awad, ‘The CEO Lawyer’ and his team of experienced attorneys today to see what we can do to assist you.
