To begin, if you own and insure many cars, you have the opportunity to purchase stacked insurance policies. If you have stacked coverage, it means that in the event of a costly accident, you will still be protected for double the amount provided by a single policy on its own. This is true even if the other driver does not have insurance.

If the driver who caused the collision is not insured, uninsured motorist (UM) coverage will pay the amount that the other driver's insurance company would have been responsible for. A UM coverage will cover any physical injuries, and depending on the specifics of the policy, it may also cover any property damage.

Your protection against other road drivers is ensured by underinsured motorist (UIM) coverage. Your UIM coverage will shield you from the financial impact of an accident someone else causes that results in more extensive damage than your insurance policy can pay for.

The damage the policy will cover is subject to predetermined limitations, just like any other insurance coverage. Insurance that is not unstacked is practically the same as a standard auto insurance policy. Many types of auto insurance plans are available, but if you don't stack your coverage, your policy is said to be unstacked. Only those things that are specified on the declarations page of your insurance are included in your coverage.

If you are involved in an accident, your policy's coverage will not be as great as it would have been if you had a stacked policy. Stacked insurance will not be possible if you own and cover a single vehicle. This indicates that you will have standard auto insurance coverage, sometimes an unstacked policy.

Cost

When purchasing any insurance policy, the premiums will increase according to the coverage you need. Because you are double your coverage limit when you stack your uninsured motorist policy, the cost of doing so is higher than the cost of acquiring separate coverage that is not stacked. On the other hand, the premium for a conventional or unstacked auto insurance policy will be less expensive than the premium for a stacked one. Remember, though, that if you wind up in an accident with a motorist who is either uninsured or underinsured, you may have to pay extra out of pocket for the damages.

Availability

In certain states, the number of policies that may be stacked together or even the capacity to do so may be restricted. You must discuss this matter with an experienced insurance agent since it might get complicated if other members of your family are the ones operating the motor vehicle. You should have no trouble acquiring standard or unstacked auto insurance from several different insurance firms, regardless of where you now reside.

Example of How Stacked Insurance Works

Consider the following scenario, in which it may be significant. Imagine that you are not to blame for an accident you were involved in. Because the other driver responsible for the collision does not have insurance and the damage done to you or your car is more than the uninsured motorist policy you have acquired for one of your vehicles, you are financially responsible for the damages.

If uninsured or underinsured motorist coverage on more than one car, you will be protected up to a predetermined maximum on each vehicle. But what happens if you are involved in an accident that damages to the tune of $150,000, but your policy maximum is just $100,000? If you have stacked your auto insurance coverage, you will be able to "borrow" from the coverage of the second vehicle without having to pay any more out of pocket if you do so.

Which Is the Best Option for You?

If you want to boost the amount of coverage provided by your uninsured and underinsured motorist insurance, then stacked coverage may be the best choice for you to consider. Naturally, the amount of coverage you have will directly correlate to the cost of your insurance policy. If you opt to stack your insurance coverage, however, you are not doing it with the best-case scenario in mind; rather, you are doing so with the worst-case scenario.

Your stacked insurance can assist protect you from having to pay any out-of-pocket expenses if you are involved in a collision with a motorist who is either uninsured or has inadequate coverage. If you have a lower level of anxiety about the possibility of an incident occurring, or if you own and cover one car, then a standard, unstacked auto insurance policy could be the best option for you.