Many clients ask us the difference between stacked and unstacked uninsured motorist (UM) coverage. Stacked UM coverage increases your UM coverage with each vehicle you own that is on the stacked policy. It allows you to combine — or “stack” — the limits for each vehicle, giving you a greater total amount of coverage. For example, someone with two vehicles each with $25,000 stacked UM policy limits would have a total of $50,000 in UM coverage on each vehicle.
Unstacked UM coverage applies the coverage limits to one specific vehicle, without combining the amounts among all of a person’s vehicles. Using the same example as before, two vehicles with $25,000 unstacked UM policies would result in coverage being capped at $25,000 for an accident involving either vehicle.
Even with one car on a policy, stacked UM insurance provides broader coverage than non-stacked in a variety of ways. To learn more about UM policies, make sure to check out our free ebook Uninsured Motorist Insurance – Don’t Leave Home Without It. You can download it here.