As a driver, it’s essential to understand the differences between auto insurance coverage options so you can find the policy that’s right for your needs. There are several types of coverage you’ll want to consider. For example, carriers may offer stacked and unstacked policies when you’re shopping for uninsured motorists (UM) or underinsured motorists (UIM) car insurance coverage. Understanding this terminology is important since stacked and unstacked insurance options offer different advantages and considerations.
Stacked car insurance allows policyholders to combine the UM/UIM coverage limits for multiple vehicles on the same policy, providing potentially higher coverage limits. Instead, unstacked car insurance does not aggregate limits across vehicles on the policy and will potentially have lower premiums. In this article, we’ll help you distinguish between stacked and unstacked car insurance so you can understand which option is right for you.
What is stacked car insurance?
Stacked car insurance means combining the coverage limits for UM/UIM insurance for multiple vehicles on the same policy. For example, if you own more than one vehicle insured under the same policy, you can “stack” the coverage limits for each car. This can potentially increase the overall coverage amount available if an accident involving an underinsured or uninsured motorist occurs.
If you have stacked coverage and own two or more vehicles with UM/UIM coverage, the policyholder can add coverage limits for each car together. It's important to note that the availability of stacked car insurance and its specific regulations can vary by state and insurance provider. Some states allow policyholders to stack coverage across vehicles, while others may have restrictions or particular requirements for stacked coverage.
What is unstacked car insurance?
Unstacked or non-stacked car insurance indicates the UM/UIM coverage for each vehicle on the policy stands alone. The uninsured or underinsured motorist coverage limits for each vehicle cannot combine or aggregate. This means that the policyholder cannot add UM/UIM coverage limits from multiple vehicles on the policy to increase the overall coverage amount available in the event of an accident involving an uninsured or underinsured driver.
Unstacked car insurance policies have separate coverage limits for each vehicle on the policy. For example, if you have two cars with uninsured motorist coverage limits of $30,000 each and you have unstacked coverage, you would have access to a maximum of $30,000 in coverage for each vehicle rather than being able to combine the limits, as you would in a stacked policy, to potentially increase the total coverage amount to $60,000.
Pros and Cons of Stacking Car Insurance
Stacking your car insurance has pros and cons, if available in your state and by your coverage provider. Here are a few of the advantages and disadvantages of stacking car insurance:
Advantages of Stacking Car Insurance
Here are some of the benefits of stacking your auto insurance coverage:
Increased Coverage Limits: Stacking allows policyholders to combine the uninsured or underinsured motorist coverage limits for multiple vehicles, potentially providing higher coverage limits in the event of an accident with an uninsured or underinsured driver.
Enhanced Protection: Stacked coverage may give policyholders access to a larger pool of funds to cover medical expenses, lost wages, and other damages resulting from an accident, especially in situations where the damages exceed the coverage limits of a single vehicle.
Single Policy Convenience: Stacking can be convenient for individuals who own and insure multiple vehicles under a single policy since it allows for the aggregation of coverage limits across all insured vehicles.
Disadvantages of Stacking Car Insurance
Here's a look at some of the disadvantages of stacking your car insurance:
Higher Premiums: Stacked insurance often comes with higher premiums than unstacked coverage, as it offers increased protection by aggregating coverage limits.
Limited Availability: Stacking may not be available in all states, and even in states where permitted, there may be specific limitations or eligibility requirements.
Regulatory Variations: The rules and regulations governing stacked insurance can vary by state, so policyholders must understand their residence's specific provisions and limitations.
Explore Your Auto Insurance Coverage Options with SelectQuote
Whether you have general car insurance questions or want to know more about stacking your policy, SelectQuote is here to help. We have nearly 40 years of industry experience, and our licensed insurance agents have helped customers like you navigate the complexities of shopping for an auto insurance policy. SelectQuote can help you compare unbiased quotes from several of the nation’s most highly trusted carriers in just minutes, making it easy to explore your options and find the right coverage.
