If you’re in the market for auto insurance, you might encounter the terms “stacked” and “unstacked” coverage. Being familiar with auto insurance stacked vs. unstacked can help you make a smart decision.
This article will break down the difference between stacked vs. unstacked auto insurance and help you determine if the stacked option is worth the cost for your needs.
What Is Stacked Auto Insurance?
When you choose stacked auto insurance, you combine the uninsured/underinsured motorist (UM/UIM) coverage limits for multiple vehicles on your policy. For example, if you own two cars, each with $50,000 in UM coverage, stacking would allow you to add the limits, providing you with $100,000 in coverage.
In simple terms, stacking increases your coverage by aggregating the limits of coverage across multiple vehicles. This could offer you a higher payout in case of an accident with an uninsured or underinsured driver.
What Is Unstacked Auto Insurance?
Unstacked auto insurance keeps the coverage limits separate for each vehicle on your policy. Using the same example, if you have two cars, each with $50,000 in UM coverage, your protection stays at $50,000 per vehicle. Even if you have more than one vehicle on your policy, unstacked coverage keeps the limits independent.
This type of insurance can be more affordable, but it means you won’t have access to additional coverage limits across multiple cars in the event of a claim.
Key Differences Between Stacked and Unstacked Auto Insurance
The key difference between stacked vs. unstacked auto insurance lies in how the coverage limits are applied. With stacked coverage, you increase your coverage by combining limits for multiple vehicles. With unstacked coverage, each vehicle has its own coverage limit, meaning you only receive the limit assigned to that specific vehicle.
In stacked coverage, if you have two cars with $50,000 UM coverage each, you can combine the limits to create $100,000 of total coverage. With unstacked insurance, the total limit remains at $50,000.
Is Stacked Insurance Worth It?
Is stacked insurance worth it? The answer depends on your needs, vehicle value, and risk tolerance. Stacked insurance gives you a higher coverage limit, offering extra protection in case of an accident with an uninsured driver. However, this higher coverage comes with a higher premium.
For those living in areas with high uninsured driver rates or who own multiple vehicles or high-value cars, stacked insurance may be worthwhile. On the other hand, if you have older cars or live in areas with fewer uninsured drivers, unstacked coverage might offer sufficient protection at a more affordable price.
How Does Stacked Auto Insurance Affect Your Premium?
When you opt for stacked auto insurance, your premium will generally be higher because you are increasing your coverage limits. The added protection comes at an additional cost, but in the event of an accident with an uninsured driver, you have a higher payout limit.
In contrast, unstacked coverage offers lower premiums because it provides less overall coverage. If budget is a concern but you’re okay with less protection, unstacked insurance might suit your needs better. However, for those seeking more robust protection, stacked coverage may offer greater peace of mind.
Why Should You Consider Stacked Auto Insurance?
For many drivers in Illinois, stacked Illinois auto insurance can be a valuable option. If you have a high-value car, multiple vehicles, or drive frequently in areas with many uninsured drivers, stacked coverage provides extra protection. Stacking UM/UIM coverage can offer you additional financial security in the event of an accident.
Having higher coverage also means you’re less likely to face financial hardship due to an accident, which could lead to medical bills, lost wages, and vehicle repairs. If you are concerned about being underinsured, stacking your coverage can give you the added cushion you need.
When Is Unstacked Auto Insurance a Better Option?
Unstacked auto insurance may be a better option for those who own older vehicles or cars with lower market value, want to save on premiums while maintaining limited financial risk, and live in areas where the rate of uninsured drivers is relatively low.
Unstacked insurance is also a good choice for drivers who don’t mind having a smaller payout in the event of an accident with an uninsured driver. However, keep in mind that it offers less coverage, which could leave you with a larger financial burden if you’re involved in a serious accident.
How to Choose Between Stacked and Unstacked Coverage
Choosing between stacked vs. unstacked auto insurance requires assessing your personal needs. Factors like the value of your vehicles, the area you live in, and how much coverage you want will influence your decision. If you’re unsure, consider the following:
- Your Vehicle’s Value: For older vehicles, unstacked coverage might make more sense. If your car is new or worth a lot, stacked coverage provides more protection.
- Your Financial Situation: If you have the means to cover higher premiums, stacking coverage may be worth it. However, if you’re on a tight budget, unstacked coverage may be the more affordable option.
- Risk Factors: If you live in an area with a high rate of uninsured drivers, stacking coverage can offer better protection.
To make an informed decision, consult with one of our Illinois insurance agents. We can help you weigh the pros and cons of each option and select the best coverage for your situation.
Why Choose RetireMax Insurance for Your Auto Coverage?
At RetireMax Insurance, we offer comprehensive auto insurance solutions for a variety of vehicles, including recreational vehicles. No matter if you’re considering stacked vs. unstacked auto insurance, our experienced agents are here to guide you through your options. We work with a variety of trusted providers to help you find the best coverage at competitive rates.
With over 30 years of experience in serving Illinois drivers, we understand the importance of selecting the right coverage for your lifestyle and budget. Our team is available to answer your questions and help you make informed decisions about your auto insurance policy. Contact us today to learn more about your auto insurance options.