Stacked Vs Unstacked Auto Insurance

Today, we’re going to be talking about stacked vs unstacked auto insurance. Stacked and unstacked insurance applies to uninsured motorist coverage. Stacked insurance combines the uninsured motorist coverage limits for multiple vehicles or multiple policies in order to increase the maximum amount that your insurer will pay. 

Unstacked insurance, on the other hand, does not allow you to combine coverage limits. There are two ways that you can stack insurance. The first is vertical stacking. Vertical stacking is when you combine the limits for multiple vehicles on the same policy. For example, if you have a policy that covers two cars and each has a $10,000 limit for uninsured motorist coverage, you can stack your coverage for a total limit of $20,000. You can also stack your insurance horizontally. Horizontal stacking is when you combine uninsured motorist limits across multiple policies with the same insurance company. For example, if you have a $20,000 policy on one car and a $50,000 policy on another car, you can combine the limits and file an uninsured motorist claim for up to $70,000. In order to stack your car insurance, you need  to live in one of the 32 states that allow it. 

Keep in mind that some states only allow you to stack horizontally. Stacked insurance is a great way to safeguard your finances if you’re hit by an uninsured or underinsured motorist, but it’s usually more expensive than unstacked insurance. Depending on your state, you might not be able to choose between stacked and unstacked insurance. Even if you do have the option to stack your coverage, the added cost may not be worth it, since some states have certain limitations on when you can use uninsured motorist insurance. But if you think that the cost of stacked insurance is worth it for the added peace of mind, then you should take a look at your state’s laws and start shopping for quotes. I hope you enjoyed this session on everything you need to know about stacked vs unstacked auto insurance. So always be sure to contact a professional before making any financial decisions.