Stacked vs. Unstacked Auto Insurance in 2024

Around 12.5% of all motorists on the road at any given time are uninsured. In California, while uninsured motorists make up 10% of all drivers, they are involved in 15% of all accidents.

Many more American drivers are underinsured, and their liability policies will only cover a fraction of the costs due after an accident.

It is a statistical likelihood that many motorists out there will benefit from preparing their auto insurance coverage accordingly in case of hit-and-run accidents or collisions with uninsured or underinsured motorists.

Learn the difference between stacked and unstacked auto insurance and whether it can protect you after a car accident.

What is stacked auto insurance?

Depending on where you live, some states allow what’s known as “stacking” car insurance.

What does stacked coverage mean? This allows an insured driver to draw upon the coverage limits of additional insured vehicles under their name, even if they were not directly involved in the accident.

Think of it as a way of maximizing your potential coverage by leveraging other policies and companies.

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What is the difference between stacked and unstacked auto insurance?

When permissible by state law, stacked insurance allows motorists to combine the coverage limits of all their covered vehicles in case of an accident with an uninsured or underinsured motorist to maximize their total available coverage.

Unstacked auto insurance means that, while you may have several different vehicles or policies, you are paying a lower monthly premium knowing that you are insured under a single policy and won’t benefit from being able to combine them to max out your coverage limits.

How Stacked Auto Insurance Works

You must carry uninsured motorist coverage to stack car insurance. Only uninsured motorist bodily injury (UMBI) coverage, which covers the policyholder’s injuries following an accident caused by an uninsured driver, qualifies for stacking insurance.

Stacking your auto insurance only applies to your injury damages if your regular coverage is insufficient. Stacking does not apply to property damage.

If the at-fault driver’s insurance limits aren’t high enough to cover all of your charges, UMBI may also apply. It will protect you and other drivers on your policy from an at-fault driver whose insurance only covers the minimum required amount by law, which varies by state.

For example, in a scenario where you require surgery, several nights or weeks in a hospital, as well as follow-up visits and rehabilitation, getting just $10,000 from the other driver will not make a dent in your bills.

While health insurance covers some medical costs, the insurance company may seek reimbursement based on the fact it is a personal injury claim. This is where stacking uninsured motorist (UM) and underinsured motorist (UIM) insurance makes the most sense.

If you carry and stack your UM coverage, you can use that additional insurance to cover those costs.

Advantages of Stacked Auto Insurance

It goes without saying that you must have this coverage before an accident to stack insurance. Only drivers with several vehicles, whether on the same policy or different policies, should consider stacked insurance.

There are two types of stacked auto insurance available. Confirm with your insurance company and state insurance laws to find out which is available to you.

• Vertically-stacked car insurance. Vertically stacked insurance allows you to combine coverage limits for multiple vehicles on one policy.
• Horizontally-stacked car insurance. Horizontally stacked insurance allows you to combine coverage limits for multiple vehicles on separate policies.

If your state offers or requires personal injury protection (PIP) coverage like Florida or Texas, you might be able to stack other coverages under all your policies. For example, stacking PIP insurance can pay for medical bills, lost wages, and child care that exceed your policy limit for the vehicle involved in the accident..

Advantages of Unstacked Auto Insurance

While there are benefits to stacking your auto insurance policies across different forms of coverage, the immediate disadvantage is higher monthly rates. With unstacked insurance, you’ll save money, but only if you avoid an accident with an uninsured or underinsured motorist.

Even with PIP, you could be left holding a percentage of the bill. And depending on the state where the accident occurred, you may be responsible for some costs even when the accident wasn’t your fault.

However, your insurance company will not allow you to file an uninsured motorist claim if you are at fault in an accident. It’s always important to read your policy and ask your insurance agent or representative if your existing full coverage car insurance limits cover an unexpected medical emergency due to an accident where you are not at fault.

Finally, insurance companies may not offer stacked insurance for non-traditional vehicles such as motorcycles, where the associated financial risk of an accident may already be inherently or disproportionately high already.

States That Allow Stacking Your Auto Insurance

It’s important to know which states allow stacking so you can tailor your insurance policies to your life and needs.

States That Allow Stacking Auto Insurnace
* Horizontal stacking only

Over half of U.S. states currently allow stacking.

When to Stack or Unstack Uninsured Motorist Coverage

Not surprisingly, uninsured drivers are often more likely to be involved in a collision than insured drivers. While it’s not fair, it’s a reality that every responsible motorist should consider and prepare for.

According to the Insurance Information Institute, 12.6% of drivers in 2019 where uninsured.

With these facts in mind, it’s easy to recognize the immediate benefits of stacking your insurance. Stacking is a great option for having peace of mind while you’re on the road, even though it is not without an extra financial burden.

How to Get Stacked Auto Insurance

When opening an insurance policy, it never hurts to ask if you can stack your insurance, especially if it’s a concern. Considering the reality of UM and UIM operating on the road, it’s not a bad idea.

Being the victim of a car accident is a traumatic experience, made worse by the idea that you might actually lose money in addition to pain, suffering, and loss of life and property.

That’s why uninsured motorist insurance becomes extremely helpful if bills become overwhelming or exceed your other coverage limits. UM coverage can also better position you to recover from a hit-and-run accident.

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What to Do if You Are Involved in a Car Accident with an Uninsured Motorist

Nearly 13% of drivers are uninsured. If you’re involved in a hit-and-run accident or collision with a UM/UIM, follow the steps below.

• Call the police. Calling the police to file a police report will give legal weight to your claim and satisfy your insurance company’s investigation more efficiently. In some states, it’s illegal to drive without liability auto insurance coverage.

• Obtain as much information from the scene as you can. Get the uninsured driver’s information anyway, whether or not they have insurance. Take pictures of the damage and get contact info from any bystanders or witnesses to support your side of the story.

• Prepare to file your claim. Contact your insurance company to proceed with a claim as soon as possible. Check your state laws to file within the deadline, which may be 15-30 days or less, or your monetary award could be reduced.

You may be entitled to compensation even without UM coverage or stacking auto insurance. It’s often helpful to seek legal advice from an expert if you question an insurance company’s decision.

Stacked vs. Unstacked Auto Insurance: How to Choose

Regardless of how you manage your car insurance policy, it is a good idea to protect your life and your property against unforeseen circumstances that could result in significant personal loss.

That’s why there’s still time for you to stack or unstack your auto insurance. Stacking uninsured motorist coverage can help pay for expensive medical bills after a traumatic auto accident. Some states also allow drivers to stack PIP insurance to pay for lost wages and childcare needs up to policy limits.

Don’t put it off any longer. Speak with an agent about stacking car insurance today and compare auto insurance quotes for uninsured and underinsured motorist coverage.

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