Stacked vs Unstacked Insurance

No, you do not need stacked insurance in Florida; it is optional. Stacked insurance refers to the practice of combining the uninsured motorist insurance (UM) limits of several vehicles or policies in order to increase your coverage, and Florida does not require UM at all. Even drivers who choose to purchase UM in Florida do not need to stack their coverage unless they want to and their insurance company provides the option.

Stacked insurance only applies to uninsured motorist bodily injury (UMBI) coverage, which pays for the policyholder's injuries after an accident caused by a driver without insurance. Depending on your policy, UMBI might also apply if the at-fault driver does not have high enough limits to pay for all of your expenses. Stacked insurance is only relevant to drivers who own multiple vehicles, whether on the same policy or different policies.

Stacked vs Unstacked Insurance Example in Florida

• You insure three cars on the same policy, each with $10,000 in uninsured motorist coverage.
• If you opt for stacked insurance, you can file a UM claim of up to $30,000.
• If you do not opt for stacked insurance, your premium will likely be lower, but you can only file a UM claim up to $10,000.

UMBI insurance overlaps with personal injury protection (PIP), which is required in Florida. PIP pays for your medical expenses after an accident, regardless of who was at fault. But stacked UMBI insurance can still be useful if your expenses exceed your PIP limits. It's also worth noting that more than 20% of Florida drivers are uninsured, so it's a good idea to consider purchasing stacked insurance or increasing your PIP limits.

Rejection of stacked uninsured coverage limits is when a car insurance policyholder chooses not to combine the uninsured motorist limits of multiple vehicles or policies. In the states where it is available, drivers have the option reject stacked coverage by signing a waiver with their insurer.

The main reason that someone might reject stacked uninsured coverage limits is that it results in a lower premium than stacked insurance. On the other hand, stacking insurance is a great way to safeguard your finances in case you're hit by an uninsured motorist, so it can often be a good investment.

To learn more, check out WalletHub's guide to stacked vs. unstacked insurance.

Uninsured motorist bodily injury coverage pays for medical care, loss of income, and funeral expenses after an accident where an uninsured driver is at fault. Uninsured motorist bodily injury insurance covers the policyholder, his or her family members, and passengers. Most policies even pay for an accident sustained when the policyholder is biking, walking, or in another person's car.

In other words, uninsured motorist bodily injury (UMBI) insurance is essentially the reverse of your liability policy. Instead of buying coverage for damage that you cause, UMBI protects you when a driver who does not have liability insurance hits you.

Uninsured Motorist Bodily Injury Limits and Requirements

UMBI coverage limits are usually expressed as two figures, one for the maximum dollar amount of UMBI that your insurer will pay per person and the other for the maximum amount per accident. For example, a policy with UMBI limits of $10,000/$30,000 would have coverage up to $10,000 for one person's injuries and up to $30,000 total for all injuries caused by one car accident.

UMBI coverage is required in less than half of states, but drivers can buy it in most states even if it is not mandatory. States with mandatory UMBI usually require limits equal to the state's bodily injury liability coverage limits, since UMBI is meant to be a substitute for the at-fault driver's liability insurance.

Uninsured Motorist Bodily Injury vs. Other Insurance

As a coverage option, UMBI somewhat overlaps with health insurance, disability insurance, MedPay, and PIP. However, UMBI often has higher limits than MedPay and PIP, and it does not require the copays or deductibles that come with health insurance.

Uninsured motorist bodily injury is also an inexpensive coverage option since it usually costs about 5% of your total annual premium.

Stacked uninsured motorist coverage is when you combine coverage limits within one policy or across multiple policies to increase the total amount your insurer will pay for an accident with an uninsured driver. Stacking uninsured motorist insurance is allowed in 32 states.

Stacking Uninsured Motorist Insurance Within One Policy

Say that you have three cars on your UM policy, each covered up to $25,000. In some states, you can stack that coverage after an incident, and your insurer will then cover up to $75,000 for a single car.

Stacking Uninsured Motorist Insurance Between Policies

If you have separate policies with one insurer, you can stack them for higher coverage limits as well. For example, if one vehicle's UM coverage limit is $50,000 and you have another vehicle on a different policy that is covered up to $25,000, you can combine them after an accident to obtain a higher total limit of $75,000.

Stacking UM coverage might be worth it to protect yourself in the event of an accident with an at-fault, uninsured driver. However, it's worth noting that your premiums will be higher than if you leave your coverage unstacked.

To learn more, check out WalletHub's guides to stacked vs. unstacked auto insurance and uninsured motorist coverage.

If you have non-stacked UM coverage and an uninsured driver hits your car, you might have to pay some of your medical costs yourself. For example, if you sustain $35,000 worth of injuries and your non-stacked UM coverage limit is $25,000, you will be forced to pay the remaining $10,000 out of pocket.

Stacking Example

There are two ways to stack uninsured motorist (UM) coverage: either on a single car insurance policy insuring two or more vehicles, or across two separate car insurance policies in your name.

For example, if you have two vehicles on the same policy and a $25,000 limit on each vehicle, you can stack those limits to obtain a $50,000 limit per accident. The same rule applies across policies: If you have two separate policies in your name, each with a limit of $25,000, you can combine them to raise your limit to $50,000.

Rules of Stacking

Stacking UM coverage may or may not be allowed, depending on the state where you live. For example, Florida and Pennsylvania allow stacking, while California and Illinois do not. In some states like New York and Georgia, you are allowed to stack across multiple policies but not on the same policy.

It is also important to note that while you can stack the bodily injury portion of UM in many states, you are never allowed to stack property damage coverage limits.

To learn more, check out WalletHub's guide to stacked vs. unstacked auto insurance.

Uninsured motorist coverage costs around $50-$75 annually for bodily injury and property damage coverage. Uninsured motorist coverage (UM) protects the policyholder by paying for injuries or damage resulting from a car accident caused by a driver who doesn't have enough insurance.

Like any type of car insurance, uninsured motorist premiums vary based on the policyholder's risk factors. How much coverage you purchase will also affect the cost of UM. Similarly, uninsured motorist premiums are higher in states with more uninsured drivers because of the additional risk.

Even if uninsured motorist coverage is not required in your state, it is an inexpensive coverage option that might be worth it depending on your circumstances.