“What is stacking UM insurance? Why would I need it, especially if I only have one vehicle?” In Florida, if you purchase bodily injury (BI) coverage, the insurance company must provide you the option of purchasing UM coverage equal to your BI coverage limits and must also provide you the option of purchasing “stacked” or “non-stacked” coverage. ( For a brief description to UM and BI coverage click here )
Stacking UM insurance allows you to add or “stack” your UM coverage times the number of vehicles on that policy. If you had two vehicles on the policy and purchased $100,000 in UM coverage, you would be entitled to $200,000 in UM coverage.
There are advantages to having “stacked” UM coverage even if you only have one vehicle. To understand the benefits of UM with one vehicle it helpful to understand differences between stacked and non-stacked UM coverage.
Non-stacked UM generally has an exclusion that the insured can’t collect UM while occupying a vehicle owned by the insured, but not covered for UM under the policy. For example: If you were involved in an accident in another vehicle you owned which was either uninsured or insured under a separate policy which did not provide UM coverage, then “non-stacked” UM would not provide coverage, but “stacked” UM would provide coverage.
Other examples where having “stacked” UM with one vehicle would be beneficial include:
- The policy holder obtains a second vehicle but does not report the vehicle to his insurance company within the time prescribed. The policy holder is involved in an accident in the new vehicle. If he/she had “stacked” UM he would be entitled to UM coverage. If he/she had “non-stacked” coverage he/she would not.
- The policy holder spends half the year in Florida and the other half up north. He/she keeps a vehicle in each state. The Florida vehicle has UM, but the vehicle up north does not. He/she is injured in his/her vehicle up north. If he/she had “stacked” UM he/she would be entitled to UM coverage. If he/she had “non-stacked” coverage he/she would not.
- The policy holder owns a motorcycle, insured under a separate motorcycle policy which rejected UM. He/she is injured by an uninsured motorist on his/her motorcycle. If he/she had “stacked” UM he/she would be entitled to UM coverage. If he/she had “non-stacked” coverage he/she would not.
It is helpful to understand the coverages when you purchase insurance. You should ask your insurance agent to define each coverage and explain the benefits of purchasing that coverage. If you have any questions, I will be happy to go over it with you.
