What Is Car Insurance Stacking?

Important auto insurance information every driver must know. What is car insurance stacking? Find out now and learn how to maximize accident coverage.

Insurance companies sometimes offer their insureds the option to “stack” uninsured motorist and bodily injury insurance policies when two or more cars are insured. With stacked policies the limits for benefits paid to the insured are higher than if the policies are not stacked. However, insurance benefits are only paid if the accident is not caused by the driver insured on the policy.

Uninsured Motorist and Bodily Injury Insurance Defined

Uninsured motorist insurance covers a driver and his passengers if they are involved in an accident caused by an uninsured driver or if they are involved in a hit-and-run. This type of insurance covers bodily injury, personal injury, car damage, and death. Bodily injury insurance only covers the other driver and his passengers and applies to accidents caused by the insured driver.

How Car Insurance Stacking Works

The number of cars insured on the policy determines the amount by which the insurance limits will increase when stacked. Two cars insured on the same policy will double the limits, three cars will triple them, etc. For example, a policy with limits of $50,000/$100,000 with two cars insured will increase the limits for each car to $100,000/$200,000 when stacked.

Unstacked Auto Policies

Car insurance stacking does not refer to the number of cars insured but rather to the amount of coverage per car. An unstacked policy with limits of $50,000/$100,000 with two cars insured will only cover each car up to $50,000/$100,000.

The Cost of Stacked Policies

Car insurance stacking increases the policy price. However, the increase in premium is often a nominal amount, and many drivers find that the benefit of increased coverage outweighs the additional cost.

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What Is Car Insurance Stacking?

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