When it comes to auto insurance, understanding your coverage options is key to ensuring you have the protection you need. One important distinction to know is between stacked and non-stacked coverage. Here’s a simple breakdown:
Stacked Coverage:
What It Is**: Stacked coverage allows you to combine the limits of multiple insurance policies for a single accident. This usually applies to underinsured or uninsured motorist coverage.
How It Works**: If you have multiple vehicles insured under the same policy, you can add together the coverage limits for all vehicles. For example, if you have two cars each with $50,000 in uninsured motorist coverage, you could potentially have $100,000 in coverage if you stack.
Benefits**: This can provide greater financial protection in case of a serious accident, especially if the at-fault driver is underinsured or uninsured.
Non-Stacked Coverage:
What It Is**: Non-stacked coverage means that each vehicle has its own separate limits, and you cannot combine them.
How It Works**: Using the same example, if you have two cars with $50,000 in uninsured motorist coverage, you would only have access to $50,000 total, not $100,000.
Benefits**: Non-stacked coverage typically comes at a lower premium, which can help save you money on your insurance costs.
Which Is Right for You?
Choosing between stacked and non-stacked coverage depends on your individual needs and financial situation. If you frequently drive in high-traffic areas or are concerned about underinsured drivers, stacked coverage might be worth the extra cost for peace of mind.