Does Florida Allow UM Stacking? What Section 627.727(8) Says

By the FigureMyTax Editorial Team · How we calculate

Yes. Florida lets insurers offer non-stacking UM at a reduced premium, but the offer is optional for the insured, must be made on an approved form and does not apply unless a named insured signs it.

The statutory text

Section 627.727(8) says insurers may offer policies of UM coverage with policy provisions, in language approved by the Office of Insurance Regulation, establishing that if the insured accepts the offer: (a) coverage on two or more vehicles is not added together to determine the limit for one accident, except as provided in (c); (b) an occupant of a vehicle has the UM coverage on that vehicle; (c) an occupant of a vehicle owned by neither her nor a resident family member is entitled to the highest limit on any one vehicle for which she is a named insured or insured family member, excess over the occupied vehicle's coverage; (d) the coverage does not apply to a named insured or resident family member injured in an owned vehicle that has no UM; and (e) a person not occupying a vehicle may select any one limit.

How the offer works

The insurer must tell the named insured, applicant or lessee on an approved form what the limitations are and that the coverage is an alternative to coverage without them. If a named insured signs, it is conclusively presumed to be an informed, knowing acceptance for all insureds, and it carries over to renewals and replacement policies unless the named insured asks to delete the limitations and pays the premium.

The price signal

Each insurer that offers it must file revised rates reflecting the lower expected loss, with a reduction of at least 20 percent in the UM premium for policies with the limitations. That is the trade: a lower premium in exchange for coverage that does not add up across vehicles.

What it does not say

The statute does not make non-stacking the default or a ban. If you never signed the form, you should not assume your policy bars stacking. We did not read Florida cases on how courts treat an unsigned or disputed form, so ask an attorney if your insurer says your coverage does not stack.

How to use this

Compare the stacked and non-stacked results in the Florida UM/UIM stacking calculator, start with the plain-English stacked versus non-stacked explainer, and read how UM and underinsured claims are paid.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Florida's rules apply to your specific case with a licensed Florida attorney.