Uninsured motorist (UM) coverage is a component of an auto insurance policy that provides coverage for you, the policyholder, when you are involved in an accident with someone who does not have insurance.

Underinsured motorist (UIM) coverage is an addition to your auto insurance policy that protects you, the policyholder, if you are involved in an accident with someone who does not have sufficient insurance of their own.  

UM and UIM coverage is something that you are given the option of acquiring at the time when you sign up for your auto policy. These coverage components can also be added after you sign up your policy, meaning you can gain such coverage at any time.

Stacked auto insurance is a way to maximize your medical coverage when you are involved in an accident caused by someone who is uninsured or underinsured. Stacking insurance allows the UM/UIM coverage limits from multiple policies to be combined and force a higher cap on what insurance will pay for post-injury care. Stacked car insurance is available to drivers in about 30 states, including Florida, who insure more than one vehicle or have more than one insurance policy on a single car.  The choice of stacking your insurance can, again, be made at the time at which you sign up for your policy, or it may be added at a later date.

When you have only unstacked insurance, you’re not allowed to combine policy limits. Unstacked insurance is for drivers who only own one policy on a single car or those who own multiple vehicles but are prohibited from stacking by either their insurance carrier or state law. Unlike drivers with stacked insurance, unstacked insurance drivers may file medical claims only on the actual car involved in an accident with an at-fault driver who doesn’t have enough insurance coverage. Because of this, premiums tend to be lower with unstacked insurance.

Stacked insurance may help you with your claim if you have been involved in an accident. If you have questions about stacked insurance or have been involved in an auto accident, call a Florida car accident attorney at Searcy Denney for help.

Do You Need Stacked Insurance in Florida?

Unfortunately, there are far too many uninsured motorists on the road, despite the legal requirement for insurance coverage in many states. The economic loss caused each year by individuals who drive without insurance is substantial.   Although all states do not require insurance coverage, every state requires that you meet financial responsibility requirements, either through insurance, a bond, or other approved means that show you can pay if you damage another person or their property in an automobile accident.

Regardless, if you are involved in an accident caused by an uninsured driver, it can be challenging to obtain full compensation for your bodily injury. Individuals who are driving without insurance will often have few, if any assets, which can be collected upon in the event that you receive a judgment. Even if you are hit by a driver who has liability insurance coverage, you could still face issues if they only carry the state’s minimum liability limits coverage; Florida only requires an individual to carry a $10,000 liability policy in order for them to be considered “insured.” When you consider how much medical care costs in today’s age, it becomes easy to see how such limits can be exhausted quickly if you are seriously injured. An exhaustion of coverage, due to medical expenses, can mean that there would be no coverage left for the repayment of lost wages, other economic losses, and for pain and suffering.

This is where stacked insurance comes into play. Stacked insurance coverage kicks in where the at-fault driver’s liability insurance leaves off. It can help to cover medical bills left over from the other party’s exhausted liability coverage. It can also help to cover damages for lost wages, pain and suffering, etc. At best, a stacked policy may help an injured individual to be made whole. At worst, it can mitigate the extent of their losses.

The foregoing is best explained through examples. Suppose Joe earns $60,000 per year, or $5,000 per month, at his job as a construction worker. While driving to work, Joe is hit by another driver who is only carrying a minimum of $10,000 in liability coverage. Joe suffers a broken arm and a concussion. He requires several follow-ups to the doctor for his arm as well as trips to a neurologist. Joe’s medical bills total $25,000, and he misses two months of work, meaning he loses $10,000 in wages. Joe’s damages, therefore, total $35,000 before pain and suffering is included. Even if the defendant’s insurance tenders the policy limit of $10,000, Joe will still not receive the full sum of his damages. If Joe has a stacked UM policy then he can make a claim against his own insurance for the difference. If Joe does not have a stacked policy then he is unlikely to receive compensation beyond the initial $10,000.

The only real disadvantage of stacked insurance is that you’ll typically pay higher premiums for higher coverage limits. This means when you stack UM and UIM limits, you’ll likely pay more for that coverage. Many individuals operate under the notion that they do not need to pay the additional premiums because they “have never been in an accident.” It is important to remember, however, that it only takes one accident for an individual to suffer serious, if not catastrophic, injuries. Such possibilities are the reason why people acquire insurance.

Contact a Florida Car Accident Attorney for More Information

Stacked insurance may be an advantageous option for you. Nonetheless, no matter what type of insurance you have, contact a Florida car accident attorney at Searcy Denney for a free consultation if you have been involved in a car accident. Once retained, we will contact the defendant’s insurance carrier, as well as your UM carrier, so that they may deal with us directly. If you are unsure as to how your own insurance applies to the situation then we will take the time to make sure that you know what to expect as the case moves forward. This allows you to focus on the important business of treating your injuries and regaining your health. 

We work on a contingency fee basis, which means you don’t pay if you don’t recover. Contact us online today for help.

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