Stacking is a car insurance coverage option that is available to drivers in some states. It applies to Uninsured/Underinsured Motorist coverage and allows car owners with more than one vehicle to get a higher level of coverage.
For example, a person who owns two vehicles could choose to stack this type of coverage and get double the amount of coverage. Owning three cars and choosing to stack the coverage means triple protection. You need to be aware that your premium rates will go up if you decide to stack your coverage, though.
Uninsured Motorist coverage is designed to protect a car owner, his or her family members and passengers in the vehicle if they are injured in an accident where the at-fault driver doesn’t have insurance. It also comes into play when the injuries are the result of a hit-and-run accident.
Underinsured Motorist coverage is designed to make up the difference between the at-fault driver’s policy limit and the damages suffered by injured people in a car accident. If the other driver only bought the minimum level of coverage required by law in the state where he or she lives, it may not be enough to pay for the cost of medical bills and expenses incurred after the accident. The Underinsured Motorist coverage pays the difference between the at-fault driver’s coverage and the injured persons’ expenses (up to the policy limits).