Should you stack auto insurance? Car insurance stacking is one of those little understood aspects of car insurance that is typically mentioned in passing as you are finalizing the details of putting a policy in place. A surprising number of people respond with a quick yes or no to stacked uninsured and underinsured motorist coverage without truly understanding what it is and why a driver would even want to carry it. Understanding all the different options that you are faced with when looking to get auto insurance coverage is very important. Knowing whether or not car insurance stacking is worth it is important knowledge to have so you can make the best decision possible for your auto policy.
Uninsured Motorist/ Underinsured Motorist Coverage Stacking
Car insurance stacking applies specifically to uninsured motorist and underinsured motorist coverage. It allows you to carry individual amounts of coverage on each of the vehicles on your policy that can be combined if you are the victim of an accident with an uninsured or underinsured driver. This provides much higher coverage protection for a lower cost than you would have otherwise paid if you were to simply buy a higher amount of coverage for each vehicle separately.
In the case of making a claim, if you are in one of the states that allows you to stack uninsured motorist/underinsured motorist coverage, you have the best chance possible of getting all your medical expenses covered. It means that if you have a stacked policy with more than one vehicle on it, and you are injured through the fault of an uninsured or underinsured driver, you can make claims against the coverage for each of your vehicles. In addition, if you have more than one auto insurance policy covering different vehicles, you can make claims against each policy in order to stack your benefits, until all your medical expenses are covered.
There are some intricacies in the use of stacking UM/UIM coverage. First, you need to be aware of any policy limitations you may be subject to. Even though you may live in a state that allows stacking, an insurer can exclude the right on your actual policy. So do not assume that you have a stacked policy. You need to understand whether or not you have the option when you are purchasing the policy.
As the victim of bodily injury, you may be able to make a claim against both your Uninsured Motorist coverage and your Underinsured Motorist coverage or make only one claim. This depends on whether or not your state regards them as two separate forms of coverage or as just one. This is another part of the equation that is important to understand when making the decision to carry stacked coverage.
In addition, depending on whether or not you are the passenger or the driver injured in an accident with someone who is uninsured or underinsured, you may be able to stack coverage even in states that do not allow it. Passengers often have the right to do this by making claims against their own policy, as well as that of the driver of the vehicle he or she was riding in. This type of car insurance stacking is not one that incurs extra cost from the outset but is more situational in nature.
States That Permit Car Insurance Stacking
Regulations concerning car insurance stacking vary greatly from state to state. In some cases, there are even loopholes in states where car insurance stacking is not permitted that allow passengers to stack coverage from different policies while not allowing drivers to do the same thing. Before you decide to opt for or against stacking your coverage, make sure you understand the benefits and disadvantages of it, as well as your home state’s rules concerning it.
The states that permit stacking are:
Alabama
Arizona
Arkansas
Colorado
Delaware
Florida
Georgia
Hawaii
Indiana
Iowa
Kentucky
Mississippi
Missouri
Montana
Nevada
New Jersey
New Mexico
New York
North Carolina
Ohio
Oregon
Pennsylvania
Rhode Island
South Carolina
Texas
Utah
Vermont
Virginia
West Virginia
Wisconsin
The Extra Cost of Car Insurance Stacking
Car insurance stacking is definitely worth the extra cost to include it on your policy. Typically, the increase in coverage that it provides you is significantly higher than the increase in premium when compared to the breakdown of cost for coverage overall on your car insurance policy. Therefore, for a relatively small increase in price you get the security of usually double the coverage for medical costs incurred in specific types of accidents. This insignificant change in premium can mean the difference of thousands of dollars if you were to make a claim.
When you are ready to choose the right stacked policy to meet your car insurance needs, you can do so quickly and easily with a car insurance comparison tool that practically does all the work for you. Get started now by putting the car insurance comparison tool to work for you!
