Stacked UM coverage means coverage limits for two or more vehicles are what?

Stacked Underinsured Motorist (UM) coverage refers to a situation where the coverage limits for multiple vehicles are combined such that the insured can access the total coverage available across those vehicles in the event of a claim. This means that if a policyholder has two vehicles each with a $50,000 limit for UM coverage, by stacking, they can potentially access a total of $100,000 in coverage if they are involved in an accident with an underinsured driver.

This concept is crucial for the policyholder as it allows for greater financial protection. Instead of being limited to the coverage of a single vehicle, the insured can "stack" their limits, thereby maximizing their available resources in the event of a loss related to underinsured motorists. This is particularly beneficial in severe accidents where medical costs and damages could exceed the individual limit of a single vehicle's policy.

In contrast, other options like combining or dividing the limits do not accurately reflect how stacked coverage works, as the focus is on enhancing the insured’s potential recovery rather than merely averaging or compartmentalizing the coverage available.