Vehicle Insurance 01 Flashcards
- What is STACKED car insurance?
Stacked insurance increases your uninsured motorist (UM) and UNDERINSURED motors (UIM) coverage limits in relation to how many cars you have.
- UM and UIM coverages generally can help:
pay for post-accident medical and property expenses after YOU’RE HIT BY A DRIVER WHO LACKS SUFFICIENT (OR ANY) LIABILITY COVERAGE.
- What are the two options that may be available under stacking?
a. Stacking across policies
b. Stacking within one policy
- STACKING WITHIN ONE POLICY means:
if you insure more than one car on the same policy, you might be able to stack UM bodily injury (UMBI) coverage.
- How does stacking UM BODILY INJURY (UMBI) work?
Say you have three cars, each with $25,000 UMBI limits, and you decide to stack these coverages. If you’re hit by a driver who doesn’t have adequate insurance, you’ll be able to combine the coverage limits under that policy, giving you a coverage limit of $75k, instead of the original $25k.
- How does STACKING ACROSS POLICIES work?
Say you have two separate car insurance policies, a car and a truck. You buy $50k of UMBI coverage for each. An uninsured driver slams against your truck, it is totaled your you’re hurt. If you STACKED your UMBI coverage, you’ll be able to file a claim under both policies if needed. So if the cost of your injury exceed one policies 50k limit, you have an extra 50k to win with from the CAR’s policy, as long AS EACH POLICY IS IN YOUR NAME.
- What is an advantage of STACKED COVERAGE?
You have higher coverage limits after an accident caused by an uninsured or underinsured driver.
- What is another advantage of STACKED COVERAGE?
Without stacking, your UM/UIM limits are capped at your liability limits in some states. By stacking, you get more coverage in case of an accident caused by another
driver, and you won’t need to raise your liability limits at the same time.
