Stacking your UM/UIM Auto Coverage
Stacking is a way to supply extra coverage to safeguard the driver who has minimum auto insurance. It relates to UM (uninsured motorist) / UIM (underinsured motorist protection) which is not mandatory it is optional.
There’s two scenarios for stacking UM/UIM insurance coverage.
1.) If you have multiple cars in your plan with UM/UIM protection on each, you can collect the limit of the UM/UIM protection under as many automobiles to receive full payment for your injuries and property damage. Generally, there isn’t a restriction upon the amount of automobiles that may be insured and thus stacked this way.
2.) For those who have several auto insurance policies with UM/UIM protection, even though they are from two different auto insurance companies, you may make claims from each plan until all your damages are recovered.
In addition, you should be insuring more than one vehicle since the coverage is actually stacked between multiple automobiles. Your limits increase by the amount of vehicles you are insuring.
Here’s an example of stacking:
You had been in an accident where the other car owner was at fault and has absolutely no car insurance. Your accident as well as damages total $125,000. Assume your policy with regard to UM is 50/100 (fifty per person and $100,000 total for each event) and you insured three automobiles. By stacking the policy for the three automobiles your limits are $150,000 for each person as well as $300,000 per occurrence, meaning you would be totally protected.
There are about twenty states that permit stacking. Nevertheless, in many states that permit stacking, auto insurance companies have the right to incorporate language which prevents policyholders from stacking UM/UIM protection. Therefore, your state may enable stacking, but your insurance policy forbids it. You will be unable to stack your benefits. Check with your own states insurance coverage regulator plus your insurance agent in order to learn more about stacking your car protection.
The main advantage of stacking is that you’re providing your family with the maximum benefit if you are involved in an accident. If the other car owner doesn’t have enough or no coverage you will be completely covered for damages sustained.