Understanding Stacked v.s. Unstacked Insurance
Maryland drivers are required to have their vehicles insured whenever it is in operation through an insurance company that is licensed in Maryland. Minimum insurance requirements in Maryland stipulate $30,000 for bodily injury protection ($60,000 for 2 or more people), and $15,000 property damage. While other states require slightly different insurance minimums, driving without liability insurance is against the law in every state.
Unfortunately, not enough people understand that minimum insurance requirements are only the beginning. More insurance means better protection for you and your loved ones in the event of an accident. Having sufficient insurance can be the difference between a full financial recovery—and a perilous financial situation.
Understanding the difference between stacked and unstacked auto insurance coverage is essential for making an informed decision about your policy. While there are many sources of payment for car accident injuries, stacking your insurance can buffer against any gaps in insurance coverage.
What is stacked insurance?
Stacked car insurance is a type of bodily insurance coverage that allows you to combine the coverage limits of multiple vehicles or policies; “stacking” primarily applies to uninsured motorist (UM) and underinsured motorist (UIM) coverage, which protect you if you're involved in an accident with a driver who lacks sufficient insurance.
By “stacking” several types of insurance products, you increase the total amount of protection available when you need it. Insurance stacking is available in Maryland through Enhanced Underinsured Motorist (EUIM) coverage; this is an optional type of coverage that you can choose when you select an insurance policy.
There are two ways to stack your insurance: vertical stacking and horizontal stacking. Vertical stacking allows you to combine your total insurance protection to cover multiple vehicles; horizontal stacking is purchasing additional insurance to cover you in the event of an accident.
Let’s consider an example. Say you own two vehicles with $25,000 in UM/UIM coverage each, and they are both insured through the same insurer. Stacking would combine these limits to provide $50,000 in coverage. Additional bodily injury coverage can be particularly beneficial in situations involving severe accidents with uninsured or underinsured drivers, as it reduces the likelihood of out-of-pocket expenses for medical bills, lost wages, or other damages.
Stacked policies will increase your insurance premiums, as they also increase the motorist coverage limits available to you after an accident. Many Maryland drivers opt for this enhanced protection; greater financial security.
What is unstacked insurance?
Unstacked insurance keeps the coverage limits for each vehicle separate. If one of your vehicles is involved in an accident, your insurer will only pay up to the specific UM/UIM limit listed for that vehicle, with no additional policy protection. While this type of policy is generally less expensive and may appeal to budget-conscious drivers, it offers less financial protection for medical expenses that may arise after an accident.
Again, let’s consider an example. Say you get into an accident and have medical bills,, property damage and legal costs totaling $100,000. If your liability insurance covers only the minimum under Maryland law — $30,000 for your bodily injury and $15,000 in property damage — you may need to pay as much as $55,000 out of pocket. For any expenses that exceed your unstacked policy limits, you will need to cover them yourself.
Is stacked insurance available in my state?
The availability of stacked insurance varies by state and insurer. Some states mandate stacking, others allow it as an option, and a few prohibit it altogether. Even in states where stacking is permitted, not all insurers offer it, and some may impose restrictions on how it can be applied—such as limiting stacking to vehicles insured under a single policy or requiring multiple policies under the same name.
While Maryland allows stacked insurance, you may want to check with your insurance carrier to understand the options available to you.
So … is stacked insurance worth it?
Choosing between stacked and unstacked insurance depends on your individual circumstances. If you own multiple vehicles and live in a state with a high number of uninsured drivers, stacked insurance might provide invaluable peace of mind despite its higher premiums. While unstacked insurance is more affordable, it also opens you up to financial risk in the event of a serious accident.
Ultimately, consulting with an insurance agent can help clarify which option aligns best with your needs and financial situation. Whether you prioritize comprehensive protection or affordability, understanding these distinctions ensures that your auto insurance policy offers the right balance for your lifestyle.
The question of stacked vs. unstacked insurance is one to consider carefully with your family, your insurance agent. Your auto insurance probably isn’t the first thing on your mind every morning—but in the moments when you need it, you’ll be glad that you gave this important topic the attention it deserves.
To receive a free case evaluation, call the Poole Law Group: 301-790-3600.
Read More from The Poole Law Group:
How Much Insurance Should I Have?
Maryland Personal Injury Protection Insurance: What You Need To Know
