What Is the Difference Between Stacked and Unstacked Insurance?

Choosing the right car insurance policy is one of the most important financial decisions a driver makes. Many people pick coverage based on price alone, without understanding how their policy will actually respond after a car accident. The difference between stacked vs unstacked insurance can mean hundreds of thousands of dollars in the event you’re hit by an underinsured driver. Without the right coverage limits in place, a serious motor vehicle accident can leave you covering medical bills and lost wages out of your own pocket, even when the crash wasn’t your fault.

Cantor Grana Buckner Bucci Car Accident & Personal Injury Lawyers help Virginia motorists understand exactly what their auto insurance policy covers before and after an accident. Insurance companies do not always make coverage limits easy to understand, and many drivers don’t realize whether their policy includes stacked coverage until they need it most. Our attorneys help clients review their policies, identify all available uninsured motorist coverage, and pursue full compensation from every applicable source. If you’ve been in a car accident and aren’t sure what your policy covers, schedule a free consultation with our team today.

What Is Stacked Insurance?

Every driver in Virginia with auto insurance has underinsured motorist (“UIM”) coverage. That means when a negligent driver causes a crash, but their insurance is inadequate to cover the injured driver’s claim – the negligent driver is “underinsured” for the claim – then the injured party’s own insurance may be used to cover the difference. But only if the injured party’s insurance “stacks” on top of the negligent driver’s liability insurance.  When you get auto insurance in Virginia, stacking UIM is the default. However, you can elect to have unstacked UIM coverage, which means your UIM insurance is reduced by the amount of the liability insurance.  The insurance companies will tell you choosing unstacked UIM coverage will save you money.  It will, but the difference in premiums is very small, and choosing unstacked UIM coverage could cost you tens of thousands, or even hundreds of thousands of dollars when you need it most – after an accident.  To simplify: Default stacked UIM coverage = a lot more coverage for you if you are injured in an accident for a very small additional cost; Optional unstacked UIM coverage = no or significantly reduced coverage for you for barely any cost savings.  DO NOT CHOOSE UNSTACKED UIM COVERAGE!! 

How Much Car Insurance Coverage Is Required in Virginia?

As of 2026, Virginia requires drivers to carry minimum liability insurance limits of 50/100/25. This breaks down as follows:

• $50,000 in bodily injury coverage per person
• $100,000 in bodily injury coverage per accident
• $25,000 in property damage coverage per accident

These limits took effect January 1, 2025, raising the state’s previous minimums. Virginia also requires uninsured motorist coverage and underinsured motorist coverage at the same limits as your liability coverage, unless you formally reject or reduce it in writing (do NOT choose lower UIM limits!!). This means a standard Virginia auto insurance policy automatically includes UM/UIM coverage of 50/100/25 alongside liability coverage, giving drivers a baseline level of protection if they’re hit by an uninsured driver or an underinsured driver.

It’s worth noting that Virginia no longer allows drivers to pay an annual fee in place of carrying real insurance. As of July 1, 2024, every registered vehicle in the state must carry an actual auto insurance policy meeting these minimums.

These are legal minimums, not recommendations. Many drivers carry higher limits, and you should too.  Increasing your insurance limits from the minimum $50,000 to $100,000 or $200,000 does not double or quadruple your premium, or even close (it is actually a very small increase in premiums), but it doubles or quadruples your coverage.

How Does Stacked Insurance Work?

Stacked underinsured motorist coverage means the insurance that covers you in case the person who hits you doesn’t have enough insurance goes on top of the other driver’s liability insurance.  Unstacked UIM coverage means that your UIM insurance is reduced by whatever there is in liability coverage.  This can mean the difference between not having enough insurance to cover your medical bills, versus getting you the full compensation you deserve.  

Here are a couple of simplified examples:

1. Negligent driver has $50,000 in liability coverage, and you have $100,000 in underinsured motorist coverage

• Stacked = $150,000 in total available coverage for your claim
• Unstacked = $100,000 in total available coverage

2. Negligent driver has $100,000 in liability coverage, and you have $100,000 in underinsured motorist coverage

• Stacked = $200,000 total coverage available for you
• Unstacked  = $100,000 total coverage available for you

Should I Choose Stacked or Unstacked Insurance?

The default coverage in Virginia is stacked coverage. So if you do nothing, this is what you get, and that is good, because that is what you want. You can make an election to instead have unstacked coverage. This will cost slightly less, but it provides substantially less protection to you and your family. ALWAYS GET STACKED UIM COVERAGE!!  

Benefits of Stacking Insurance

• Increases total available insurance coverage available to you 
• Provides greater financial protection if you’re seriously injured by an underinsured driver
• Can help cover large medical bills that exceed a liability policy’s limits
• Unstacked insurance provides hardly any cost savings

Did you know that in addition to the insurance policy on the vehicle you were in at the time of the accident, you may also be able to use the underinsured motorist coverage available on other auto policies to increase the total amount of coverage available to you?  If you are a named insured on another policy, or if a relative who lives with you has their own insurance, are just two examples. Insurance is complicated, and you can’t count on the insurance company to identify all of the sources of coverage you may have available to help when you’ve been injured.  We know where to look and what to look for to find all of the coverage you are entitled to.  

Cantor Grana Buckner Bucci Car Accident & Personal Injury Lawyers | Richmond, VA

After a car accident, understanding whether your policy includes stacked coverage or unstacked coverage can directly affect how much compensation you’re able to recover. Insurance companies are not required to explain these distinctions to you, and claims adjusters are not working on your behalf. Cantor Grana Buckner Bucci Car Accident & Personal Injury Lawyers have the experience to review your auto insurance policy, identify every applicable coverage, and pursue the compensation you’re entitled to after a motor vehicle accident in Virginia.

Our team handles claims involving uninsured drivers, underinsured drivers, and disputes over coverage limits, helping clients throughout Richmond and across Virginia recover compensation for medical expenses, lost wages, and other accident-related losses. If you’ve been injured in a car accident and have questions about your coverage, schedule a free consultation with Cantor Grana Buckner Bucci Car Accident & Personal Injury Lawyers today.