Frequently Asked Questions - Stacked Insurance In Florida - What Are The Pros And Cons?
If you own more than one vehicle then stacked insurance is a good buy. With rising totals of vehicles on the road’s accidents are something the odds say will happen. With stacked insurance, if you are in an accident, that is not your fault, with someone who does not have insurance then this will help with the excess expenses. Purchasing just uninsured or underinsured motorist coverage on your vehicles is usually just not enough. If you stacked your insurance coverage this will allow you to borrow from one of your vehicle’s coverage to the other without out of pocket expenses in the event of an accident.
For example, if you just had an accident and the damages were $100,000 and your limit of coverage was $50,000 then you would be responsible for that $50,000 difference. But if you stacked then your other vehicle policy would help to kick in to pay the difference. People driving without insurance is a problem. Having uninsured coverage helps the people who do the right thing from unexpected costs but is just not enough. Uninsured motorist’s insurance pays what their insurance should have paid for any bodily injury and can cover the damaged property, but if there are limits that are below the cost of damage this can be a problem. With your own under-insured motorist insurance, it will cover if a person does not have enough coverage on their policy to take care of the damages, but what if limits don't meet the cost? Your under-insured insurance would kick in and protect you. But with both, there are set limits to how much damage the policy does cover. This is where stacking works. If you have a couple of cars then stacking the coverage limits would give you a higher coverage, basically doubling your coverage with the benefit of peace of mind and financial security.
There are many types of insurance coverage on cars. The most important one is when you are in an accident. Florida's minimum liability and property damage is important when thinking of coverage. Liability and property damage coverage protects other drivers on the road from the damage you cause. Having coverage protecting other people's property and medical costs will help to protect your own finances. If you don't have it you can be sued. When stacking insurance this will give you the extra coverage for the people who are careless and reckless when they are behind the wheel of a car. Because car insurance is regulated at the state level, the laws in each state vary, and options are different. Over half of the states in the United States allow stacking, but courts in states that don't have this type of insurance will often side with the consumer's side on stacking claims. That is when it gets to court.
The pros and cons, pro is that with stacked insurance if you are in a serious accident and even if the other driver is under-insured or uninsured, then you will be covered for double the amount of one policy alone. On the other side, it would be more expensive. It is more expensive than just buying one or an unstacked coverage since you are raising your coverage limit. Another con would be that this is not available in all states so check with your agent to discuss what this policy entails and if the cost would be beneficial to your financial security. Also, both policies need to have your name on them to be used.
The good of unstacked car insurance would be less costly. If you already have a good size liability limit on your policies instead of something like state minimum you really wouldn't be a good candidate. And with unstacked, there are fewer steps and requirements because getting stacked has some steps and requirements that need to be in place to be used in case of an accident. A Con would be that some accidents can even go higher than what the stacked insurance limit is and you will still be liable for that amount.
The basic idea behind all insurance is that you buy it before you need it. The best policy is the make sure it fits all your needs and unexpected needs. This is so if disaster hits, and it will, you won't find yourself in dire financial disaster. Truth in the saying “better safe than sorry”. Insurance is a program that gives people protection against major disasters by combining risks with other people or paying into a kind of pool, which will pay if you have said an illness, injury, death, or car damage. Having insurance allows you to transfer the possibility of a catastrophic financial loss to the insurance company and if you weren't covered it's devastating. Insurance is a purchase made thinking into your future and before there is a disaster. Getting your policies in order while things are good and your still insurable. Each state has its own rules for what is required when thinking of auto insurance. To be within legal standards you must have liability insurance, but keep in mind that liability is very limited on what it pays out if you cause the damages. So stacked or unstacked is a financial decision you would need to make. Weighing all information and talking with your auto insurer is a good way to begin your financial future and security. Your insurance agent can better explain the stacking laws for whichever state you live in and they are best to answer any question you will have on your uninsured and under-insured coverage option. If stacking is the option for you be sure to carefully look at any additional premiums to make sure it the right financial fit for you. And remember this is not a fit for someone who owns one car or doesn't have any assets, but their jobs pay. Getting higher liabilities limits would be the best for them, whereas when compared to someone paying on two vehicles and adding a stacked premium it would cost just about the same. So, either way, each is protecting what they have.