Stacking coverage refers to a type of insurance policy provision that allows an insured individual to combine or “stack” the limits of coverage from multiple insurance policies for a single claim. Essentially, it allows the policyholder to add the limits of coverage from two or more policies to increase the overall amount of available coverage.
For example, if a person has two auto insurance policies with stacking coverage and each policy has a limit of $50,000, the person may be able to stack the coverage to obtain a total limit of $100,000. This can be particularly beneficial in situations where the damages from a claim exceed the limits of coverage provided by a single policy. Stacking coverage can also be used in cases where the insured individual has multiple policies, such as two separate vehicles insured with different companies.
Stacking Coverage and Car Accidents:
Stacked coverage can be beneficial for those who are injured in a car accident, as it can provide additional insurance coverage beyond what a single policy may offer. Some examples of stacked coverage that can be helpful in the event of a car accident include:
- Uninsured/Underinsured Motorist (UM/UIM) Stacked Coverage: This type of coverage can be used if the other driver involved in the accident does not have insurance or does not have enough insurance to cover the damages. Stacked UM/UIM coverage allows the injured person to “stack” their coverage limits from multiple vehicles on the policy to increase their total coverage.
- Personal Injury Protection (PIP) Stacked Coverage: PIP stacked coverage is similar to UM/UIM stacked coverage, but it applies to medical expenses and lost wages. If the injured person has PIP stacked coverage, they can combine the limits from multiple vehicles on the policy to increase their total coverage for medical expenses and lost wages.
- Liability Stacked Coverage: Liability coverage can help pay for damages and injuries that the policyholder causes to others in an accident. Stacked liability coverage allows the injured person to stack the limits from multiple vehicles on the policy to increase their total coverage. This can be helpful if the injured person has significant medical bills or other damages that exceed the limits of a single policy.
The availability and specifics of stacked coverage may vary depending on the insurance company and the policyholder’s individual policy. It’s recommended that you review your policy details carefully and contact your insurance provider for more information about specific coverage and claims process.