What is the difference between Stacked and Unstacked Auto Insurance?

What is Stacked and Unstacked Auto Insurance? Stacked insurance is for those who own or need to insure more than one vehicle. In unstacked, multiple vehicles are not covered under insurance.

Premiums of unstacked auto insurance lower than that of stacked vehicles. This is mainly because in stacking as many vehicles are to be covered, the total premium amount is also more for a particular claim.

What is Stacked and Unstacked Auto Insurance

Advantages of stacked insurance over unstacked

If you have multiple cars stacked insurance stacked insurance is the one you should go for. Not only this it is also useful when you own one car. Suppose your car meets with a damage or accident.

In such case stacked auto insurance helps you to combine accidents or damage from a vehicle which may not be insured at all or partially covered.

Understanding stacked insurance with different examples.

Suppose in case one you own two cars and you have insured only one of your cars. Now suppose uninsured car meets with an accident. You have to pay for the entire damage from your pocket.

If this you had done stacked insurance in that situation the entire insurance amount could have been transferred from insured to uninsured car.

In case two you have insured both your cars in unstacked insurance and each car insurance is about Rs. 1,00,000. One of these cars gets damaged and the claim is about Rs. 1,50,000.

Because you have selected unstacked auto insurance, extra Rs. 50,000 is to be paid by you. In this situation if the cars had stacked insurance, then you could have transferred this Rs. 50,000 from your other car and get total benefit.

All these benefits are not provided with unstacked auto insurance.

Know about stacked uninsured vehicle coverage

Unlike unstacked, stacked auto insurance takes care of other party insurance. In brief, if a damage to your vehicle was not your fault and that other party has to pay for the damage.

In this it is the other party should pay for the damage. Now, that party is uninsured and cannot pay for it, stacked uninsured vehicle coverage takes care of such condition.

In another case if the other party is less insured and cannot completely cover your vehicle damage, stacked uninsured vehicle coverage proves very beneficial. It pays for the difference coverage even under the criteria.

This shows how stacked auto insurance covers all the situations and cases unlike unstacked one. Like every policy has its advantages and disadvantages, stacked insurance also has some. They are as follows:


  • Wider coverage of different situations: Accident that led to more damage and higher end cost repair, stacked insurance takes care even if the other person is less insured.
  • It gives double coverage and you do not need to shell out a penny from your savings. As already mentioned, different situations are covered and you can be assured, relaxed for that one car or your fleet of cars.


  • Very Expensive: As it is said, everything comes with a price tag. The stacked auto insurance does have its many benefits but more the benefits costly becomes the policy.
  • Stacked insurance is costlier than unstacked insurance. Covering for other party damage or single insurance for multiple cars or shifting for insurance money from one car to another, all these criteria make stacked insurance very expensive.
  • Not applicable everywhere: Not all states accept this policy. Many states overlook stacked insurance and you do not get the coverage if your car gets damaged at one such place.
  • So be careful when you are shifting or in a commute to check beforehand about the policy there.
  • Person driving and the name on insurance matters: Sometimes the agency from whom you have bought the policy can play some tricks. One such is many times they do not cover if the name of person on the insurance and the person driving the car is different.
  • Also, if you want to use insurance for another car then that car also should be in the name of same person. If not, stacked insurance for multiple cars goes invalid.

Keeping all these cons in mind, always ask for a detailed illustration from your insurance agent before finalising just by seeing the benefits of stacked insurance policy.

 FAQs of Stacked and Unstacked Auto Insurance

  • What is UM and UIM coverage limits?

UM means uninsured motorist coverage and UIM stands for underinsured motorist coverage.

Both of them come under unstacked auto/ vehicle insurance. UM means you are not paid for other party who has hit your car and he is uninsured.

UIM means the other party is under insured and he should had paid for the damage.

  • Which insurance should I select stacked or unstacked?

Unstacked means that you are UM and UIM coverage limits. You will be insured even for another person who has hit your car.

Unstacked insurance is a very basic insurance vehicle policy and is not useful if you own multiple cars.

  • How much uninsured motorist coverage I need to have?

It is very important to consider the amount for your uninsured motorist coverage.

While considering one remember that you will need to have more or at least equal insurance amount of that other party who will be either uninsured or underinsured.

  • Will the damages for my car with a different person driving stacked or unstacked insured?

If the driver and the name on insurance paper are not same then many insurance companies do not cover for such damage.

In this case the person should have a different insurance policy on his name. You may also show that you had explicitly denied the person from driving your car.

Conclusion –

Shall always hope that your car and you never meet with an accident or any kind of damage. This will always keep you at bay from insurance require. Insurance is always taken considering the worst condition. According to one of the latest statistics, one of every eight person driving on road is uninsured. In such case you need to take precaution from your side.

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