Stacking vs. Non-Stacking Auto Insurance in Florida: A Complete Comparison

Deciding between stacked and non-stacked uninsured/underinsured motorist (UM) coverage is one of the most important choices you’ll make when buying car insurance in Florida The stacking method you select can dramatically impact how much protection you’ll have if injured by an irresponsible driver

As a Florida driver, understanding the key differences between policy stacking and non-stacking is critical to make sure you have adequate coverage. In this comprehensive guide, we’ll explain everything you need to know about stacked vs. non-stacked auto insurance in FL.

What is Stacking Insurance Coverage?

Let’s start with what stacking actually means. Stacking insurance refers to combining the coverage limits of multiple vehicles or policies together to increase the total payout available.

With stacking, you can take the UM limits from each car or policy and literally “stack” them on top of each other to multiply the coverage.

For example, say you insure two cars for $100,000 in UM protection each If stacking applies, you could join those limits together for $200,000 total coverage per accident.

Stacking allows you to unlock the full benefits of having UM coverage across multiple cars and policies. It turns each additional policy into extra layers of protection.

What is Non-Stacking Insurance Coverage?

In contrast, non-stacked UM coverage limits your payout to the stated amount on one policy, regardless of other vehicles or policies you may have.

For example, if you had $100,000 in UM protection on two different cars, non-stacking would still only pay up to $100,000 total if you were injured. You cannot combine or “stack” the limits to reach $200,000.

With non-stacking, you forfeit the ability to multiply your coverage by adding more insured vehicles and policies.

Is Stacking the Default in Florida?

Yes, stacking uninsured motorist coverage is automatic in Florida. When you purchase UM protection, it will stack across all your vehicles and policies by default unless you select non-stacking.

Florida law sets minimum default stacking limits of:

• $10,000 per person bodily injury
• $20,000 per accident bodily injury
• $10,000 property damage

So even if you buy only the minimum UM required, it will stack to provide greater coverage. Many policies exceed these minimums, in which case the higher limits apply for stacking.

To choose non-stacked UM, you must sign a written rejection form with your insurer. Otherwise, stacking is the standard.

The Major Pros and Cons of Stacking vs. Non-Stacking

To help decide which approach may be best for your needs, here is an overview of the key pros and cons of each option:

Pros of Stacking Insurance

• Higher total coverage limits if you insure multiple vehicles
• One accident can access payouts from multiple coverage pools
• Covers all resident relatives and household members
• Cheaper to add UM coverage to additional vehicles
• Protects you in any vehicle – car, motorcycle, etc.

Cons of Stacking Insurance

• More expensive base premiums
• Increasing vehicles raises premiums
• Buying unnecessary extra policies drives up costs

Pros of Non-Stacking Insurance

• Lower base insurance rates
• Premiums don’t increase with added vehicles
• Simple coverage analysis

Cons of Non-Stacking Insurance

• Limited payout to one policy’s face value
• Less protection for your premium dollar
• Insufficient coverage if damages exceed one policy

As you can see, there are compelling arguments on both sides. Weigh your risk factors, assets and budget to see which option may fit best.

How Can I Stack Insurance Across Vehicles and Policies?

There are two scenarios where stacking multiples your coverage limits:

1. Stacking within a single policy

If you insure multiple cars on one policy, you can stack the UM coverage from each vehicle together. For example, two cars with $100,000 UM each would stack for $200,000 total per injury.

2. Stacking across multiple policies

If you also insure vehicles across several different policies, you can stack between policies too. So two policies with $100,000 UM each could provide $200,000 total when stacked.

Stacking combines limits both within a policy and across multiple policies for maximum protection.

Why is Stacked Insurance So Important in Florida?

There are a few key reasons why stacking coverage is especially critical in the state of Florida:

• Florida has a high rate of uninsured drivers – Almost 1 in 4 FL drivers lacks proper liability insurance. This raises the odds you could be hit by an at-fault driver with insufficient coverage.

• UM protects you when at-fault insurance falls short – Stacked UM safeguards you if the other party’s liability insurance can’t fully cover your crash-related expenses.

• Injury costs can exceed policy limits – Even severe injuries can result in hundreds of thousands in medical bills and lost income. Stacked coverage provides greater ability to fully compensate for damages.

For these reasons, stacking uninsured motorist coverage is highly beneficial in Florida specifically.

Who is Protected Under Stacked Insurance?

Stacking your policies doesn’t just protect you as the named insured, but also:

• Resident relatives
• Family members
• Minors in your care
• Passengers in your insured vehicles

So multiple people in your household can access the stacked coverage after an accident, not just you.

The Non-Stacking Waiver in Florida

To select non-stacked UM coverage, Florida law requires drivers sign a written rejection form with their insurer. This waiver overrides the default stacking.

Key facts about Florida’s non-stacking waiver:

• Must be signed by the named insured
• Applies to all vehicles and policy renewals
• Selection can be revoked in writing
• Must specify exact policy limits

Carefully review this form before signing to understand what limits you are declining.

Should You Choose Stacking or Non-Stacking in Florida?

Whether stacking makes sense depends on your specific situation:

Stacking pros:

• Provides higher coverage limits and greater asset protection for multi-vehicle households
• Ideal for high-risk drivers and accident-prone areas

Stacking cons:

• More expensive upfront, especially if buying only minimum limits
• Multiplies rate hikes when adding more vehicles

Non-stacking pros:

• Lower base auto insurance rates
• Costs don’t increase with additional vehicles
• Can save money if only buying mandatory minimum UM

Non-stacking cons:

• Restricts payouts to one policy’s limits
• Less protection for your premium dollar
• Insufficient if injuries exceed one policy’s limits

Analyze your risk tolerance, household makeup, assets and budget to determine if stacking is your best option.

Can I Change Between Stacking and Non-Stacking?

Yes, Florida drivers can change their UM stacking selection when a policy renews or by requesting a midterm amendment from their insurer.

To switch your choice, you simply complete a new waiver form – either revoking an existing non-stacking rejection or signing a new one. Contact your insurance company to start the process.

However, once an accident claim is filed, you typically cannot adjust stacking regarding that specific loss. The choice in effect at the time of the crash remains applicable.

How Can an Attorney Help with Stacking?

The complex legal rules around insurance stacking and non-stacking waivers can be confusing. An experienced attorney can provide valuable assistance:

• Analyzing your policies to ensure optimal stacked coverage
• Challenging improper non-stacking waiver forms
• Maximizing claim payouts by utilizing stacked benefits
• Fighting wrongful denial or underpayment of rightful stacking benefits

Their expertise can help guarantee you capitalize on stacked coverage you pay for after an accident.

Stacking Insurance: The Bottom Line

While non-stacking may lower upfront policy rates, stacking provides critical protection exactly when you need it most – after a serious crash.

Effectively combining UM policies turns each additional policy into extra layers of coverage that can better compensate for major injuries and losses. For sufficient asset protection, stacking is often the smart choice for Florida drivers.

Key Takeaways on Florida Insurance Stacking and Non-Stacking

• Stacking insurance multiplies UM coverage limits across vehicles and policies. Non-stacking restricts payouts to one policy’s face value.

• Stacking is automatic in Florida unless you sign a non-stacking waiver. Review this form carefully before selecting.

• Stacking provides greater asset protection for multi-car households. Non-stacking offers cheaper base premiums.

• Drivers can change stacking selections when policies renew or via midterm amendments.

• An attorney can help optimize stacking, ensure waivers are proper, and maximize claim payouts.

Understanding the critical differences between stacking and non-stacking will ensure Florida drivers choose adequate UM protection. Consult an insurance professional to pick the best option for protecting yourself and your family