Question About UM/UIM Regarding Stacking

[BlockO]

I don't understand why someone with a SINGLE VEHICLE policy would want to choose the stacked option for UM/UIM coverage. what is the possible benefit?

no matter what the value of X is, X times 1 always equals X. so stacking a single car is of no benefit, unless I am missing something.

I ran a dummy quote with one of my carriers just to see the premium difference between 100/300 stacked and 100/300 unstacked, with everything else staying the same on a one car avg joe policy..... The stacked option came up $24 higher/6 mo.

why would the premium be higher? (see X*1=X above) what benefit would the insured get for that extra $4 a month?

the only reason I can think of is that the insured is planning on buying and insuring a 2nd vehicle soon. but even then, an agent can endorse that change (upping coverage to the stacked option) real quick & easy. so why pay the extra premium beforehand if it's unnecessary?

Am I missing something?

 

[djs]

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Sorry, this question does not compute. Can you ask again in a way us simple folks from California can understand. Stacked vs Unstacked? Huh?

Processing has returned..... Google was my friend....
Please explain stacked UM and stacked UIM?

I agree, why would you do this if you have only 1 car?

Dan

 

[Guest]

I am confused also, but I "assume" he means single combined limit versus split limits....

 

[djs]

Nope, I guess some states actually allow you to combine the UM/UIM coverage from all of your cars. 100/300 on 2 cars would actually give you 200/600.

Its a strange way of thinking, since in reality, instead of buying 250/500 on each car, you buy 100/300 on both of your cars, allow it to be stacked, and have effectively almost the same thing.

Given the cost of UM/UIM coverage, somebody spent a lot of time trying to save the consumer from themselves on this one and didn't do a very good job.

Dan

 

[BlockO]

sorry for the confusion. up until now, I've only sold in Ohio, and never heard of stacking until a few days ago. I learned about it just like DJS did, by google.

if you choose to stack, UM/UIM coverage is multiplied by the number of vehicles on the policy.

But again, someone with just one car????? It doesn't make any sense for them to select stacking. and unless I'm missing something, it doesnt seem ethical for a company to charge extra for the same coverage.

 

[1manshow]

Don't know about others but here in Pa the stacking choice allows you to double, triple etc the UM/UIM limit based on the #of cars insured on the policy.

Big lawsuits over carriers who allowed agents or did not restrict agents from deleting the "stacking" when an insured sold or deleted vehicles and the result was a single car on teh policy with "stacked" limits.

My opinion..the agent needs to backdate the change to non stacked to the date the change was made to a single car policy.