One of the things that often confuses people about UM coverage is the difference between stacking UM coverage and non-stacking UM coverage.  Florida law requires insurance companies to offer stacking UM coverage.  This coverage is so important that Florida law also requires that you sign a document rejecting stacking UM coverage if you choose not to purchase it. When we request a certified copy of an insurance policy for our clients, we also require a copy of the signed written rejection if the insurance company contends that the UM coverage is non-stacking.  The insurance company must provide stacking coverage if they are unable to produce the signed written rejection.

The Difference Between Stacking and Non-Stacking UM Coverage

The difference between stacking UM coverage and non-stacking UM coverage is simple.  Stacking UM means that the amount of the coverage for the insured is combined with each motor vehicle on the insurance policy.  For example, the policy may provide UM coverage limit for each insured in an amount of $100,000.00.  The policy may have 3 motor vehicles.  A stacking UM policy would provide $300,000.00 in UM coverage to the insured.  ($100,000.00 x 3 motor vehicles = $300,000.00).  A similar insurance policy with non-stacking UM coverage would only pay the limit of $100,000.00 no matter how many vehicles were on the policy. Besides stacking vehicles on the same policies, an insured can also combine stacking coverage on separate insurance policies.  However, insurance companies are allowed to offer policies prohibiting stacking and limiting coverage to the vehicle occupied by the insured at the time of the accident. 

You Need to Understand Your Coverage

It is imperative that you understand your insurance policies when determining how much insurance you actually have.  We always recommend purchasing stacking UM coverage.  While it does typically cost more, the increase is usually slight and typically worth the additional expense.  Have your agent provide you several different quotes to compare how various amounts of coverage affect your premium.  You may be surprised at how little it costs to obtain a lot more protection.  At TWW, we are always happy to review your insurance policies and discuss the type and amount of protection you have.  We never charge any fee or cost for this.  Please contact us if you would like us to review your policy or if you have any questions about your legal rights.