As a driver, you may be ‘stacking insurance’ without even knowing. However, you should understand how stacking coverage applies to auto insurance as a road user. Keep reading to learn more about stacking insurance and how it works.
What Does It Mean to ‘Stack’ Insurance?
Stacking insurance is when you place a claim on two uninsured motorist policies at the same time. Stacking allows you to collect more insurance money to cover your medical bills if you’re hurt in a car accident. In certain states, stacking is prohibited.
Your vehicle insurance carrier may include an “anti-stacking provision.” This means you won’t be able to make numerous UM claims for a single-car accident.
If you’re able to stack insurance, you have two options:
- Coverage stacked for two automobiles under the same policy.
- Stack coverage for two vehicles in your name under two distinct policies.
Stackable insurance inside the same policy
Assume you have two cars covered under the same policy, each with $100,000 in uninsured motorist coverage. If you’re hurt in an accident an uninsured driver causes, you can “stack” coverage and get up to $200,000.
Stackable Insurance inside two different policies
You have coverage for two vehicles under two separate policies, each with $100,000 in uninsured motorist coverage. Imagine you sustain an injury due to an uninsured driver striking one of your vehicles.
Here, you may be eligible for up to $200,000 in uninsured motorist compensation. However, both insurance must be in your name.
When it comes to this technique, there are a few more aspects to consider:
- Stacking generally necessitates a higher investment: You must choose to stack when purchasing or renewing a policy. You won’t be able to add or use stacking after an accident.
- It is only relevant when you’re not at fault: If you sustain injuries in a car accident that you caused, you won’t be able to obtain UM benefits or stack them.
