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car insurance stacking

When you’re involved in an accident, having sufficient car insurance coverage is important. When an uninsured or underinsured motorist crashes into your car, that’s doubly true, because he or she doesn’t have enough to cover your medical bills and property damage. “Stacking” your uninsured/underinsured motorist (UM/UIM) coverage can be a lifesaver — if your state allows it.

Stacking UM/UIM coverages means you are able to collect from more than one car insurance policy to receive full payment for your injuries and property damage. Not every state allows this, so check the chart at end of this story. Here’s how you can stack your coverages.

Insurance Stacking Example 1

You own an auto insurance policy under which two or more cars are insured with UM/UIM coverage. When you’re hit by an uninsured or underinsured driver, you collect the limits of your UM/UIM coverage under as many vehicles as necessary to receive full payment for your damages. For example, if you have a two-car policy with $50,000 worth of bodily injury UM/UIM coverage per person on each car, you can collect up to $100,000.

Key Takeaways

  • Uninsured/underinsured motorist coverage (UM/UIM) pays if you are injured by an at-fault driver who is underinsured or not insured at all.
  • Stacking UM/UIM allows you to combine coverage limits from multiples vehicles for a claim, which helps you to receive full payment for your injuries and damaged property.
  • States vary on if stacking of UM/UIM is allowed.
  • In some states that allow stacking, insurers are allowed to exclude stackings in the policy details.

Insurance Stacking Example 2

You own more than one auto insurance policy with UM/UIM coverage. (The policies could be with the same insurer or two different insurers.) To collect all of the damages, you could make a claim under the UM/UIM coverage of each of the insurance policies you own. For example, if you have one policy with $50,000 worth of UM/UIM bodily injury coverage per person and another policy with $25,000 worth of UM/UIM bodily injury coverage, you can collect up to $75,000 for any injury you suffer as a result of a collision with an uninsured or underinsured motorist.

States split on stacking

Some state laws prohibit stacking of UM/UIM coverage, but many allow it in one form or another. Presently, 30 states have statutes, rules or case law that allows stacking. However, Robert Passmore, spokesperson for the Property Casualty Insurers Association of America, cautions that the details of your situation can affect your ability to stack coverage and that state laws, rules and codes change often as courts issue new decisions.

Also, in many of the states that allow stacking, car insurance companies are nonetheless permitted to insert policy language that prevents policyholders from stacking UM/UIM coverage. So while your state might permit stacking, if your policy expressly forbids it, you won’t be able to stack your benefits.

Another wrinkle: The states that expressly forbid stacking of your UM/UIM benefits when you’re the driver of a vehicle hit by an uninsured motorist might allow you to stack coverage if you are injured as a passenger in a vehicle or as a pedestrian that has been struck by an uninsured driver. For example, if you’re a passenger in a car struck by an uninsured driver, you could collect benefits from the car insurance policy of the driver of the car in which you are a passenger, as well as from your own policy if the driver’s UM/UIM benefits were not enough to pay for your injuries.

There’s also the possibility that you can collect from your own UM and UIM coverage more than once because many states regard these as separate coverages. For example, if you’re a pedestrian who’s hit by an uninsured driver, your UM coverage would kick in first and, theoretically, you could collect from your UIM coverage if your UM coverage is not enough to pay for your injuries.

However, the laws in each state vary widely with each situation and often depend on previous cases that have been decided in court. The bottom line is that there is often no easy answer to finding out if you can stack your UM/UIM benefits.

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QuickTake

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Where you can stack auto insurance coverage

State UM/UIM
stacking allowed?
Special notes
Alabama Yes n/a
Alaska No n/a
Arizona No n/a
Arkansas Yes Although stacking coverage is not statutorily prohibited, it may be precluded by applicable anti-stacking clause in a policy.
California No n/a
Colorado Yes n/a
Connecticut No n/a
Delaware Yes Stacking is allowed but only among multiple policies.
Florida Yes Stacking is allowed, unless waived in writing on state-approved form.
Georgia Yes Stacking is allowed but only among multiple policies.
Hawaii No Not allowed under multiple policies, but insurer must offer the option to purchase stacking under a single policy.
Idaho No n/a
Illinois No n/a
Indiana No Only allowed under one policy if separate and specific premium is charged for UM coverage.
Iowa No n/a
Kansas No n/a
Kentucky Yes n/a
Louisiana No n/a
Maine No n/a
Maryland No n/a
Massachusetts No n/a
Michigan No n/a
Minnesota No n/a
Mississippi Yes While stacking is allowed, clear anti-stacking clauses in an insurance policy have been upheld by the courts.
Missouri Yes n/a
Montana Yes n/a
Nebraska No n/a
Nevada Yes n/a
New Hampshire Yes Unless clearly excluded by an insurer’s policy.
New Jersey Yes Stacking is allowed but only among multiple policies.
New Mexico Yes n/a
New York Yes Stacking is allowed but only among multiple policies.
North Carolina Yes Stacking is allowed but only among multiple policies.
North Dakota No n/a
Ohio Yes Unless clearly excluded by an insurer’s policy.
Oklahoma Yes Stacking is allowed but only among multiple policies.
Oregon Yes Stacking is allowed but only among multiple policies.
Pennsylvania Yes But insured may select no-stacking option for a reduced premium.
Rhode Island Yes n/a
South Carolina Yes Unless clearly excluded by an insurer’s policy.
South Dakota No n/a
Tennessee Yes Stacking is allowed but only among multiple policies.
Texas Yes Stacking is allowed but only among multiple policies.
Utah Yes Stacking is allowed but only among multiple policies.
Vermont Yes n/a
Virginia Yes n/a
Washington No But anti-stacking language must be very clear in the insurer’s policy.
West Virginia Yes But insurer may clearly prohibit stacking in a single policy.
Wisconsin Yes But insurer may limit coverage to 3 vehicles.
Wyoming Yes Stacking is allowed but only among multiple policies.

Source: Property Casualty Insurers Association of America, 2009 statistics

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Ashlee Tilford
Contributor

 
  

Ashlee, a former managing editor, insurance, at QuinStreet, is a journalist and business professional. She earned an MBA in 2014 with a concentration in finance. She has more than 15 years of hands-on experience in the finance industry.

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