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How does stacked insurance protect you against uninsured drivers?

On Behalf of | Sep 5, 2022 | UM/UIM Coverage |

People purchase car insurance because it is supposed to protect them in case of an accident. However, car drivers in Minnesota often encounter drivers who are either uninsured or underinsured. In these instances, having stacked car insurance offers extra protection.

What is stacked insurance?

Stacked insurance allows you to combine your insurance coverage limits for multiple vehicles or multiple policies. With stacked insurance, you can increase your uninsured and underinsured motorists coverage.

How does stacking coverage protect you against uninsured drivers?

Minnesota requires every driver to carry Personal Injury Protection (PIP) insurance. Most plans only offer maximum coverage of $20,000 to be used for medical bills and an additional $20,0000 for economic or wage loss. If you are in an accident with an uninsured driver or a driver with poor coverage, you may rely upon your own insurance to cover your bills. Since medical bills can be much more than $20,000, a stacked insurance plan may benefit you. When you stack your coverage, your maximum coverage can be $20,0000 times your total number of vehicles.

What factors do you need to consider about stacking?

Other factors to consider about stacked insurance include:

• You can stack within one policy or across multiple policies.

• Whether you can get stacked insurance depends upon your existing coverage and company.

• Stacked insurance costs more than unstacked insurance.

• You cannot stack property damage coverage.

What questions should you ask to determine if you should stack your insurance?

If you are considering stacking your car insurance, ask yourself if the extra monthly costs will be affordable for your budget. Also, consider whether the extra monthly costs will be more affordable than footing the entire medical bill on your own after a car accident with an uninsured or underinsured driver.