What Is Stacked Uninsured Motorist Coverage?

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What Is Stacked Uninsured Motorist Coverage

What is stacked uninsured motorist coverage and how this stacked uninsured motorist coverage differ from the unstacked car insurance coverage? Here, you will find all your answers as this article is all about What is stacked uninsured motorist coverage? What’s the difference between stacked and unstacked uninsured motorist coverage?

So, let us first understand the meaning of What is stacked uninsured motorist coverage? And know what is stacked insurance?

What Is Stacked Insurance?

Stacking basically defines the insurer that you can combine two or more than 2 limits or say coverage limits for multiple vehicles. Where a coverage limit defines the maximum limit or amount that the insurer needs to pay toward a covered claim. Through which you can claim greater protection involved in case of any mishap or car or motor accident with an uninsured or underinsured driver. Thus, to raise your coverage and protection you can go for Stacking insurance.

What Is Stacked Uninsured Motorist Coverage?

Stacked uninsured motorist coverage is a coverage option that protects the driver in case if you’re in an accident with a driver who doesn’t have insurance or in case the limits of the driver are too high to pay for the damage they caused you. Thus, you can categorize this stacked uninsured motorist coverage into 2 parts as follows:

  • Uninsured motorist coverage (UM): Uninsured motorist coverage is also known as UM which provides cover in case of an accident with the driver who does not hold or has any insurance.
  • Underinsured motorist coverage (UIM): Underinsured motorist coverage is also known as UIM which provides cover in case of an accident with the driver having high insurance limits to pay for the damage caused.

What Is Unstacked Insurance?

The unstacked insurance denotes that you do not combine the limits of the insurance policy and your UM/UIM coverage limit is the one that is issued by the insurance company or as defined. You will not receive any extra coverage limits. It will be the same as listed on your insurance policy.

What Is Non-Stacked Uninsured Motorist Coverage?

A non stacked uninsured motorist coverage does not combine the coverage limits or the limits of your UM/UIM coverage. It will be the same as listed on your insurance policy.

Advantages Of Stacking Insurance:

  • By Stacking insurance, you can combine the limits or say the UM and UIM coverage limits on the policy and use that as one.
  • You need to pay less due to the higher coverage option by combining the limits.
  • Your protection against accidents is reduced by stacking insurance.
  • You will be covered even if the other driver in an accident is not covered.

States That Allow Stacking

Here we have mentioned some of the States that Allow Stacking which is as follows:

  • Alabama
  • Arkansas
  • Colorado
  • Delaware (across multiple policies only)
  • Florida
  • Georgia (across multiple policies only)
  • Hawaii
  • Indiana
  • Kentucky
  • Mississippi
  • Missouri
  • Montana
  • Nevada
  • New Hampshire
  • New Jersey (across multiple policies only)
  • New Mexico
  • New York (across multiple policies only)
  • North Carolina (across multiple policies only)
  • Ohio
  • Oklahoma (across multiple policies only)
  • Oregon (across multiple policies only)
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Tennessee (across multiple policies only)
  • Texas (across multiple policies only)
  • Utah (across multiple policies only)
  • Vermont
  • Virginia
  • West Virginia
  • Wisconsin
  • Wyoming

What’s The Difference Between Stacked And Unstacked Uninsured Motorist Coverage?

Stacked uninsured motorist coverage is a coverage option that protects the driver in case if you’re in an accident with a driver who doesn’t have insurance or in case the limits of the driver are too high to pay for the damage they caused you. So, you can combine uninsured and underinsured motorist bodily injury (UMBI) limits under the Stacked Insurance.

The unstacked insurance denotes that you do not combine the limits of the insurance policy and your UM/UIM coverage limit is the one that is issued by the insurance company or as defined. You will not receive any extra coverage limits. It will be the same as listed on your insurance policy. So, you cannot combine uninsured and underinsured motorist bodily injury (UMBI) limits under the unstacked Insurance.

FAQ

What’s The Difference Between Stacked And Unstacked Uninsured Motorist Coverage?

Stacked uninsured motorist coverage is a coverage option that protects the driver in case if you’re in an accident with a driver who doesn’t have insurance or in case the limits of the driver are too high to pay for the damage they caused you. So, you can combine uninsured and underinsured motorist bodily injury (UMBI) limits under the Stacked Insurance.

The unstacked insurance denotes that you do not combine the limits of the insurance policy and your UM/UIM coverage limit is the one that is issued by the insurance company or as defined. You will not receive any extra coverage limits. It will be the same as listed on your insurance policy. So, you cannot combine uninsured and underinsured motorist bodily injury (UMBI) limits under the unstacked Insurance.

Is Stacked Insurance Worth It?

Stacked insurance is a good option to be considered when the insured person is involved in an accident and is also not at risk and where the other driver does not have insurance, as well as the damage to your vehicle, exceeds the uninsured motorist coverage that the insurance company has issued to you.

What Is Stacked Uninsured Motorist Coverage In Florida?

Better coverage options, as well as higher limits, are provided in stacked UM coverage in Florida, which even covers you up in case you are driving any car and also applies in case the car is owned, borrowed one, or rented car. And also the Non-stacked uninsured motorist is less costly compared to the other stacked UM.

What Is The Uninsured Motorist Coverage?

The uninsured motorist coverage defines the insurance coverage where you do not have auto insurance and helps out to pay for the damages caused when the driver does not hold any insurance.

Conclusion

It is less likely that you might need to use stacked insurance coverage and combine the limits of the coverage. But, that’s what insurances are for to cover you up in case of the worst scenario. Thus, by now you know What is stacked uninsured motorist coverage? What’s the difference between stacked and unstacked uninsured motorist coverage? As a stacked uninsured motorist coverage is a coverage option that protects the driver in case if you’re in an accident with a driver who doesn’t have insurance or in case the limits of the driver are too high to pay for the damage they caused you. So, you can combine uninsured and underinsured motorist bodily injury (UMBI) limits under the Stacked Insurance. 

And the unstacked insurance denotes that you do not combine the limits of the insurance policy and your UM/UIM coverage limit is the one that is issued by the insurance company or as defined. You will not receive any extra coverage limits. It will be the same as listed on your insurance policy. So, you cannot combine uninsured and underinsured motorist bodily injury (UMBI) limits under the unstacked Insurance. Thus, by now it is clear what is stacked uninsured motorist coverage?

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