Stacked vs. Single-Policy UM/UIM Coverage in Indiana

By the FigureMyTax Editorial Team · How we calculate

Stacking adds the uninsured and underinsured motorist limits of several policies or vehicles together. Indiana lets a policy provide that total liability for one accident does not exceed the highest limit under any one policy, and does not otherwise address stacking.

What stacking means

A household may have more than one policy or vehicle with UM/UIM. Stacking adds those limits after one injury, so $100,000 and $50,000 become $150,000. Single-policy coverage pays only the highest applicable limit.

What the statute allows

IC 27-7-5-5(a) says the policy or endorsement may provide that the total limit of all insurers' liability arising out of any one accident does not exceed the highest limits under any one policy applicable to the loss, but in no event may coverage be less than the minimum. It is permissive: it says what a policy may do and does not say what happens without such a term.

Coverage only on charged vehicles

When coverage is written for one or more vehicles under a single policy, it applies only to the vehicles for which a specific UM or UIM premium charge was made, and not to other vehicles insured under the policy or owned by the named insured without a premium charge (27-7-5-5(b)).

A worked example

Suppose you are an insured under two policies with $100,000 and $50,000 of UIM, the at-fault driver paid $25,000 and your damages are $250,000. With a highest-limit term, UIM pays $100,000 less $25,000 = $75,000. If your policies had no such term and the limits added up, it could be $150,000 less $25,000 = $125,000. Try your own numbers in the Indiana UM/UIM stacking calculator.

What to check

Read the limit-of-liability and other-insurance clauses of each policy, and ask your insurer in writing which limits it says apply. We did not read Indiana court decisions on stacking, so ask an attorney. See what section 27-7-5-5 says and how UM and UIM work in Indiana.

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