What is the "stacking" of uninsured motorist coverage?

Stacking of uninsured motorist coverage refers to the practice of combining limits from multiple policies or vehicles to enhance the total amount of coverage available to an insured when filing a claim. This is particularly beneficial in situations where an individual has multiple vehicles covered under separate auto insurance policies or has insurance from different insurers. By stacking limits, the insured can effectively increase their overall coverage, allowing for potentially higher payouts in the event of an accident involving an uninsured driver.

This concept is significant in states that allow stacking, as it provides additional financial protection. Rather than being limited to the coverage of a single policy, the insured can access a broader range of benefits, which can make a considerable difference when facing medical bills or vehicle repairs after an incident with an uninsured motorist.

The other options do not correctly describe stacking: combining premiums relates to payment structures but does not pertain to coverage limits, selecting a higher deductible focuses on the out-of-pocket expenses rather than coverage enhancement, and calculating the total insured value concerns valuation rather than the aggregate limits of coverage across policies or vehicles.