When you are involved in a car accident, it’s important to understand the different types of insurance that may be available to cover your medical bills and other expenses. One type of coverage that can be especially beneficial is stacking insurance, which allows you to add together multiple policies from different auto policies or insurance companies.
Stacking uninsured or underinsured motorist coverage (UM/UIM) is a way for people to increase their protection if they are injured in an accident with someone who does not have enough insurance coverage. This type of policy allows you to combine the limits of several policies, so if one policy does not provide enough coverage, you can use the additional limits from another policy.
For example, if you have two cars and each has its own UM/UIM policy with $50,000 in coverage, then stacking those policies would give you a total of $100,000 in coverage. This can be especially helpful if the other driver does not have enough insurance to cover all of your damages.
In addition to increasing your overall protection, stacking insurance can also help protect you from certain legal issues that might arise after an accident. If there is no anti-stacking provision in your policies, then stacking them could prevent the other driver from arguing that one policy should take precedence over another. This could be especially important if the other driver has limited assets and cannot pay for all of your damages without using multiple policies.
It’s important to note that not all states allow stacking insurance; some states require anti-stacking provisions in order for insurers to offer UM/UIM coverage. In Virginia, for example, personal injury attorneys must thoroughly review your policies and decipher any confusing language before determining whether stacking is allowed or not.
When deciding whether or not to stack your auto insurance policies, it’s important to consider what type of coverage each policy provides as well as how much it will cost you overall. Stacked insurance can prove to be a huge benefit if you are in an accident with an uninsured driver or an underinsured driver; however, it may also increase your premiums significantly depending on how many vehicles are covered by each policy and what type of coverage they provide.
Ultimately, it’s up to each individual person to decide whether or not stacked auto insurance is right for them based on their own unique situation and needs. It’s always best practice to speak with a qualified Birmingham personal injury attorney who has experience handling car accident claims before making any decisions about how best to protect yourself financially after an accident occurs.