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Unstacked vs. Stacked Auto Insurance - What is the Difference?

Mar, 02
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Stacked unstacked insurance auto centennial

The majority of the country does not allow for a stacked auto insurance policy. Florida is one of only a handful of states that does this.

What is stacking? – Let’s Compare

In Florida, you are able to either stack across policies or in one policy. If you have more than one car, stacking your insurance is ideal.

When you “stack” car insurance, it increases the amount of insurance money that becomes available if you are involved in an accident with an uninsured (UM) or underinsured (UIM) motorist. The dollar amount that you can receive is based on how many vehicles listed on your insurance policy.

Stacked Insurance

If you insure more than one car under a single policy and you are in an accident where you get hit by a UM or a UIM, you are able to use the coverage from both vehicles to pay the associated costs from the accident.

As an example, let’s say you have stacked uninsured motorist coverage and get hit by a UM or UIM. Should your medical bills exceed the amount of the first car’s coverage, the second car’s coverage then takes over and fills that gap. In Florida, you have the option of either stacking under one policy or stacking under multiple policies.

Unstacked Insurance

If your policy is written as unstacked and you carry auto insurance on multiple vehicles, you are prohibited from “borrowing” from another car’s coverage should an accident occur. Only the policy of the car that you are driving will be used to pay for the medical bills. The rest of the bill must be paid out of pocket or from another source.

The Downside of Stacking

Like most benefits, it does come with a price. There is a cost associated with stacking insurance. Since the insurer’s payout is more for a stacked policy, you will pay higher premiums.

You may opt to do without UM/UIM coverage, but with that choice should you get in an accident with one of these uninsured drivers and become injured, you will pay for all of the medical bills above the Personal Injury Protection Coverage that is on your policy.

At Centennial Insurance Services, we are well versed in the laws and regulations related to stacking your insurance. Give us a call to discuss your auto insurance options at 239-247-5125. www.cisinsfl.com.