Stacked Limits One Car
- Thread starter nyc2phi
- Start date
- 1,016
Stacked with only one vehicle? That doesn't make sense.
What's probably happened was that there was another vehicle(s) on the policy before, and the agent/company didn't change it to unstacked when they dropped down to one vehicle.
That's no big deal as long as they aren't charging extra premium for being stacked (because 15/30 multiplied by 1 is still 15/30).
I think some companies got into hot water over that recently (surcharging for stacked coverage when there's really no extra coverage). I remember someone posting about it a while back.
What's probably happened was that there was another vehicle(s) on the policy before, and the agent/company didn't change it to unstacked when they dropped down to one vehicle.
That's no big deal as long as they aren't charging extra premium for being stacked (because 15/30 multiplied by 1 is still 15/30).
I think some companies got into hot water over that recently (surcharging for stacked coverage when there's really no extra coverage). I remember someone posting about it a while back.
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Not true, read the policy contract.
Let me give you an example of how I think it benefits on one car, at least in Florida. (In Florida, you can't have non-stacked coverage on one vehicle with Allstate).
If other uninsured motorist coverage applies (i.e. you're in someone else's car and they have UM), your coverage will be excess over theirs.
If it is non-stacked, you will receive benefits only from one policy, either yours or the owner's car.
That's the way it works for some companies in some states at least. I haven't confirmed that with any of our other carriers. We tend to not sell much UM as it is expensive in a lot of cases here in Florida.
Let me give you an example of how I think it benefits on one car, at least in Florida. (In Florida, you can't have non-stacked coverage on one vehicle with Allstate).
If other uninsured motorist coverage applies (i.e. you're in someone else's car and they have UM), your coverage will be excess over theirs.
If it is non-stacked, you will receive benefits only from one policy, either yours or the owner's car.
That's the way it works for some companies in some states at least. I haven't confirmed that with any of our other carriers. We tend to not sell much UM as it is expensive in a lot of cases here in Florida.
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- 1,016
USF, the example you gave makes sense. But that would only be a very minor added value. Worth a few extra bucks? Sure! Worth saving $10ish dollars or less a month to skimp on UM coverage? No way!!!!
From an insured's prospective, that would be a foolish strategy. Just taking higher UM limits from the get go would be better than trusting that the vehicle you're borrowing has high UM limits.
I lived in FL for a while. So I know what you mean by higher UM premiums. But in most states, it's not that bad, and certainly not high enough for an insured to take that risk just to save a few bucks...... what if the car being borrowed only has state min UM limits also? In PA, which is where I think the OP is referring to, even with excess coverage in your example, an injured insured would only get 30K. Why not just take the higher limits to begin with?
The only way I see where stacking with low UM limits would make logical sense is if the insured has a driveway full of vehicles.
From an insured's prospective, that would be a foolish strategy. Just taking higher UM limits from the get go would be better than trusting that the vehicle you're borrowing has high UM limits.
I lived in FL for a while. So I know what you mean by higher UM premiums. But in most states, it's not that bad, and certainly not high enough for an insured to take that risk just to save a few bucks...... what if the car being borrowed only has state min UM limits also? In PA, which is where I think the OP is referring to, even with excess coverage in your example, an injured insured would only get 30K. Why not just take the higher limits to begin with?
The only way I see where stacking with low UM limits would make logical sense is if the insured has a driveway full of vehicles.
- 676
I don't see how it make sense to have a lower um/uim stacked or unstacked. Why wouldn't you give yourself at least the same limits as what your are giving to others. In PA having stack on one car applies to and in addition of when you are a passenger/driver in another auto you don't own.
I don't see any advantage, except for the pennies saved. Best to write at least the same limit as the BI and stacked too as it warrants.
- 1,016
The way some companies calculate rates, it can come out cheaper by stacking if someone insures multiple vehicles. It's merely exposing flaws in rating systems.
For example, suppose someone has 250/500 liability coverage with 5 vehicles. Choosing 50/100 um stacked will sometimes come out cheaper than choosing 250/500 um unstacked, even though it's the same coverage.
For example, suppose someone has 250/500 liability coverage with 5 vehicles. Choosing 50/100 um stacked will sometimes come out cheaper than choosing 250/500 um unstacked, even though it's the same coverage.
I agree, BlockO. I've never had anyone ask about the benefits of stacking on a single vehicle.
It's just something I thought I'd throw out there since I discovered it while reading auto insurance contracts.
Same thing with having rental reimbursement on a stolen insured vehicle with comp coverage without having rental reimbursement coverage.
Also, in Florida, your PIP pays out for a pedestrian you hit whether at-fault or not, if that pedestrian cannot recover PIP elsewhere and is a Florida resident.
I've never had either situation come up but it's interesting stuff to know, lol.
It's just something I thought I'd throw out there since I discovered it while reading auto insurance contracts.
Same thing with having rental reimbursement on a stolen insured vehicle with comp coverage without having rental reimbursement coverage.
Also, in Florida, your PIP pays out for a pedestrian you hit whether at-fault or not, if that pedestrian cannot recover PIP elsewhere and is a Florida resident.
I've never had either situation come up but it's interesting stuff to know, lol.
