What Does It Mean When You Stack Your Car Insurance Policies?

When dealing with the aftermath of a car accident, especially one involving significant expenses and injuries, it’s crucial to understand your insurance options. Stacking your car insurance policies can be a valuable strategy if you find yourself in a situation where uninsured or underinsured motorists are involved.

Defining uninsured and underinsured car insurance coverage

First and foremost, you must understand what uninsured and underinsured car insurance coverage is. These two types of coverage are completely optional in San Antonio, which means that many people may choose to opt out of them. However, if your car insurance policy includes uninsured and underinsured car insurance coverage, you, your family, and any of your passengers will be covered if you are struck by an at-fault driver who does not have any or enough insurance to pay for your losses.

For example, if you are driving a motorcycle on your way home from work and a driver of a pickup truck slams into your bike and causes you to be thrown over the handlebars and onto the hard asphalt, you will likely suffer catastrophic injuries, which will result in expensive medical-related expenses.

However, if the pickup truck driver only has the minimum required liability coverage in Texas, their car insurance policy will only cover a small portion of your losses. If you have uninsured or underinsured coverage, you can file a claim with your own insurance company to help you pay for some of the leftover expenses from your accident. If you do not have uninsured or underinsured coverage, you will either need to file a lawsuit or pay for the leftover expenses out of pocket.

Keep in mind that uninsured and underinsured car insurance coverage is typically used for medical bills, lost income, physical pain, scarring, disfigurement, disability, rental vehicles, car repairs, and more. Most people use this type of coverage if they are involved in a hit-and-run accident or if the other driver does not have adequate insurance to cover their losses.

What does it mean when you stack your car insurance policies in San Antonio?

In Texas, stacking refers to combining uninsured and underinsured motorist coverage from multiple policies or vehicles to increase the amount available for a claim. This option is available if you have separate policies for multiple vehicles, but it cannot be applied within a single policy.

Here is an example of how car insurance stacking works A family purchases $30,000 in uninsured and underinsured car insurance coverage for two separate vehicles. Their son is borrowing one of the vehicles and wrecks due to another driver’s careless and reckless behavior. His medical bills are $55,000, which means that the uninsured and underinsured insurance coverage from one vehicle will cover $30,000 of these medical bills.

However, if the family decides to stack their insurance coverage from both vehicles, there is another $30,000 available, which is more than enough to cover the rest of his medical expenses. Remember that in order to successfully do this in Texas, the vehicles must be on two separate car insurance policies.

What does it mean if my car insurance company does not allow me to stack my insurance?

If your car insurance company does not allow you to stack your insurance, this means that you won’t be able to combine coverage limits from different policies. This limitation may occur if you choose a lower premium option, which typically doesn’t offer stacking benefits. While opting for a lower premium might save money upfront, it can result in insufficient coverage in the event of a serious accident.

Should I stack my car insurance policies?

Deciding whether to stack your car insurance policies depends on your financial situation and risk tolerance. Stacking can be a cost-effective way to enhance your coverage, often costing less than $10 extra per month. Considering the potential for significant medical expenses and lost income following a serious accident, this additional coverage can be invaluable.

If you live in San Antonio and are concerned about the possibility of encountering an uninsured or underinsured driver, stacking your policies might be a wise investment for your future protection.

If you or a loved one has recently been involved in a car crash caused by an uninsured or underinsured driver, the legal team at Pat Maloney: Accident & Injury Attorney is ready and available to assist you. We know and understand the devastating, stressful, and expensive effects that result from these types of accidents. Therefore, if you hire us, we will look over the facts and details of your accident, go over your rights and legal options, communicate with the insurance company, and fight for the compensation you are entitled to. Insurance companies usually make these types of situations difficult by trying to talk you out of stacking your insurance policies. However, Pat Maloney has many decades of experience dealing with complicated and challenging insurance companies, and he will do everything he can to ensure that you obtain the coverage that you ultimately need. Please call our office or complete our contact form to schedule a free consultation in San Antonio to learn more about how we can help you today.