Stacked vs Unstacked Insurance: What’s the Difference and Which Should You Choose?
Whether you choose stacked vs. unstacked car insurance depends on whether you want a policy that combines uninsured motorist insurance coverage limits across multiple vehicles or increases your overall protection, or simply your standard, non-combined approach to car insurance.
This guide will explain how stacked coverage works, including vertical stacking within a single policy and horizontal stacking across multiple policies. It will share the advantages and disadvantages of each option in terms of coverage and cost as well as factors to consider when deciding between stacked vs. unstacked insurance.
What Is Stacked Insurance and How Does It Work?
Stacked car insurance gives you the ability to combine insurance policy limits for multiple vehicles into a stacked policy with a higher coverage limit, giving you greater protection against uninsured drivers and accidents. In essence, you add insurance limits for different cars together, in turn creating higher overall coverage limits.
Insurance stacking generally only applies to uninsured motorist coverage and underinsured motorist coverage (UM/UIM), and you must be a driver on every policy that is stacked. There are two key types of stacked UM/UIM car insurance available for drivers today:
Vertical stacking: This option requires at least two vehicles on the same policy and involves combining the multiple coverage limits to get a higher limit across the policy. For example, if you have three vehicles on the same car insurance policy, each with a $20,000 limit for uninsured and underinsured motorist coverage, you could stack them to raise your total coverage to $60,000 per accident.
Horizontal stacking: In this case, you stack coverage for multiple vehicles within one household, provided your name is on each policy. For example, if you and your spouse have separate car insurance policies for your personal vehicles, in some states you can combine the UM/UIM coverage limits on the two policies.
Choosing stacked vs. unstacked insurance can be an important consideration for drivers. Whichever you opt for, each state also has minimum car insurance coverage limits that you must adhere to.
What Is Unstacked Insurance Coverage?
Unstacked auto insurance is what most drivers have. In this case, uninsured and underinsured motorist coverage limits are not combined. Even if you have multiple cars insured on the same insurance policy, you can only use the coverage limits of the specific vehicle involved in the incident.
This is typically the default option for auto insurance coverage, so you will not have to choose it. It also tends to be more affordable.
Stacked vs Unstacked Insurance: Key Differences
There are several major differences when it comes to stacked vs. unstacked auto insurance:
Coverage limits: With stacked insurance, coverage limits for multiple vehicles or policies can be combined together. They are not combined with unstacked insurance.
Cost: A big point of differentiation between unstacked vs. stacked insurance is the price tag. Because it combines multiple policy options, stacked insurance is more expensive when it comes to monthly premiums.
Allowance: Unstacked car insurance is allowed in every state, while stacked insurance is not. The same goes for insurance companies, with some allowing stacked car insurance but others prohibiting it. It's always important to check with your insurance company before making any changes or buying a new policy.
Pros and Cons of Stacked Insurance Coverage
The pros of stacked car insurance include:
You can double or even triple your current uninsured motorist coverage/underinsured motorist coverage limits with stacked insurance.
If your area is known for a high rate of uninsured drivers or accidents, stacked insurance can make a real difference in the wake of an accident.
Stacked insurance may offer important peace of mind to the drivers in your household.
On the other hand, stacked coverage has some drawbacks:
This type of coverage will cost you more.
Some states and insurance carriers do not allow insurance stacking.
You will need multiple vehicles or policies to stack.
State Laws: Where Is Stacking Allowed or Prohibited?
Stacking regulations vary from state to state. Here are the states where insurance stacking is allowed:
States Where Stacking Is Allowed With Multiple Policies
Should You Choose Stacked or Unstacked Insurance?
Now that you understand what is stacked vs. unstacked insurance, it's time to consider which option is the best for you. Ask yourself:
How concerned am I about uninsured or underinsured drivers in my area?
What is the rate of accidents where I live?
How much am I willing to pay for monthly insurance premiums?
Your individual answers to all of these questions should weigh into whether you choose to stack insurance, if that is an option in your state.
Get the Right Coverage: Compare Auto Insurance Options Today
Beyond minimum coverage limits, it's important to get the right coverage for your driving needs. If you're considering stacking or otherwise updating your auto insurance policy, EverQuote always offers free custom quotes. Review insurance options side by side and find the best and most affordable option for your needs.
It only takes a few minutes to get a custom comparison today. Check out EverQuote to get started on finding the right auto insurance coverage for you.