{"id":34567,"date":"2022-01-12T10:40:59","date_gmt":"2022-01-12T10:40:59","guid":{"rendered":" https:\/\/dev.way.com\/blog\/?p=34567"},"modified":"2022-01-14T05:38:02","modified_gmt":"2022-01-14T05:38:02","slug":"stacked-insurance-what-is-it-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/dev.way.com\/journal\/stacked-insurance-what-is-it-and-how-does-it-work\/","title":{"rendered":"Stacked insurance: What is it and how does it work?"},"content":{"rendered":"

To understand the differences between stacked and unstacked car insurance, we must first understand what they are. Stacked insurance lets you combine policy limits from multiple car insurance policies<\/a> to help offer greater protection in the event of an accident with an uninsured or underinsured motorist.<\/em><\/p>\n

How does stacked insurance work?<\/span><\/h2>\n

Stacked insurance primarily deals with uninsured and underinsured motorist coverage<\/a>. The term “stacking” refers to combining coverage limits for several cars. Coverage limit is the maximum amount your insurance will pay toward a covered claim.\u00a0<\/span><\/p>\n

As a result, merging multiple coverage limits into a single larger limit can provide more protection in the event of a road accident involving an uninsured or underinsured motorist.<\/span><\/p>\n

In general, stacked insurance works in two ways. However, the availability of either option depends on your state’s laws.<\/span><\/p>\n

Multiple cars on the same policy:<\/span><\/strong>\u00a0Each car’s uninsured motorist coverage limits can be combined to form a higher composite limit, offering extra coverage. This is commonly referred to as horizontal stacking.<\/span><\/p>\n

Multiple vehicles with separate policies:<\/span><\/strong>\u00a0If you own two cars or more and are insured under several policies, you may combine the uninsured\/underinsured motorist coverage limitations with extra coverage. However, you must note that the policies must be in your name. This method of stacking insurance is commonly called vertical stacking.<\/span><\/p>\n

\"stacked<\/a><\/p>\n

Here’s how stacked insurance works:<\/span><\/strong>\u00a0Assume you were hit by an uninsured driver, resulting in a $25,000 medical bill. You own two vehicles, each with uninsured bodily injury limits of $20,000 apiece. If you don’t have stacked insurance, you’ll be on the hook for $5,000 if the at-fault party can’t or won’t pay.<\/span><\/p>\n

On the other hand, if your car insurance policy has stacked limits, you could combine the coverage of the two policies and claim up to $50,000. As a result, you would have enough coverage to cover all of your medical expenditures.<\/span><\/p>\n

Read: Had an accident with an uninsured driver? Now what?<\/a><\/p>\n

States that allow both kinds of stacked insurance<\/span><\/h3>\n