Does Iowa Allow UM/UIM Stacking? What Section 516A.2 Says

By the FigureMyTax Editorial Team · How we calculate

Iowa enforces anti-stacking provisions, states a legislative intent of recovery up to the highest single limit, and requires stacking forms to be available for purchase.

Construction and offsets

Section 516A.2(1)(a) says the chapter does not require UM coverage, alone or combined with similar coverage under other policies, to afford limits above what an accident with a minimum-limits insured would afford, except for a policy containing both underinsured and uninsured coverage. Forms of coverage may include terms, exclusions, limitations, conditions and offsets designed to avoid duplication of insurance or other benefits.

The abrogation

Paragraph (b) says that to the extent that Hernandez v. Farmers Insurance Company, 460 N.W.2d 842 (Iowa 1990) provided for interpolicy stacking in contravention of specific contract or policy language, the general assembly declares the decision abrogated, and that enforcing antistacking provisions does not frustrate the protection given under the UM statute.

Stacking forms and the highest single limit

Subsection (2) directs the commissioner of insurance to adopt rules to assure the availability within the state of policies, riders or endorsements that provide for stacking of UM and UIM with similar coverage available to an insured. Subsection (3) states the intent that when an injured insured has more than one policy, the insured is entitled to recover up to the highest single limit under any one of them, paid by the insurers according to any priority-of-coverage provisions.

What it leaves open

The statute does not say how much UIM pays when the other driver has insurance, and it allows offsets. We did not read Iowa court decisions on those points or on stacking under an endorsement. Ask an attorney before assuming your policies add up or do not.

How to use this

Compare the single-limit and stacked results in the Iowa UM/UIM stacking calculator, start with the plain-English stacked versus single-limit explainer, and read how UM and UIM work in Iowa.

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