Stacking applies to which types of coverage?

Stacking is a concept that allows a policyholder to combine coverage limits from multiple insurance policies or from multiple vehicles under a single policy. This practice is most relevant in the context of motor vehicle insurance, specifically concerning uninsured motorist (UM) and underinsured motorist (UIM) coverage.

When a driver has multiple cars insured, stacking allows them to access the coverage limits for each vehicle in the event of an accident involving an uninsured or underinsured motorist. For example, if a policyholder has two vehicles insured with UM coverage of $50,000 each, stacking allows them to potentially claim up to $100,000 in the event of a claim involving an uninsured motorist, rather than being limited to the coverage of a single vehicle.

This concept enhances the protection for policyholders by providing additional coverage options in cases where the at-fault party does not have sufficient liability insurance. Thus, stacking is closely associated with uninsured and underinsured motorist coverage as it maximizes the benefits available to the insured in such scenarios.