What is Stacking v. Non-Stacking Coverage
There is a specific type of automobile insurance called, “uninsured motorist coverage.” (UM) This coverage will cover all of your losses (medical bills, lost wages, pain and suffering, etc.) if the person who caused the accident doesn’t have the money to pay for it. UM coverage is arguably the most important car insurance because it covers you and your loved one if they get hurt.
If you have UM insurance then it will be one of two types: Stacking or Non-Stacking. Stacking coverage means that you have a multiplier on your UM insurance depending on the number of cars you have. If you have 2 cars, then you multiply the amount of coverage you have by 2. If you have 5 cars, then you multiply the amount of coverage you have by 5. However many cars you have on that particular insurance policy is how many times your UM coverage is multiplied.
For example, say you have $100,000 in stacking UM insurance. You have 2 family cars on the policy. This UM policy now has $100,000 x 2 as coverage. In other words, your policy is worth $200,000. Let’s change it. Instead of having 2 cars, you have 3 cars on the policy. Now you have $100,000 x 3 or $300,000 in coverage.
Stacking coverage costs a little more since it provides more coverage. Over the years, I’ve seen many clients with stacking coverage and they only have one vehicle on the policy. So they pay more and get no benefit. A quick way to save some money on car insurance is to see if you have stacking coverage with only one vehicle. If you do, switch to non-stacking to save some money.
Non-stacking coverage is where you have UM coverage but get no multiplier. If you only have one vehicle on the policy, you should elect for non-stacking as you would get no benefit from the stacking of one vehilcle.
If you have any questions about any of these topics, feel free to contact us at Chris@waggenerlaw.com, 727-685-8000, or check out our other articles at waggenerlaw.com.