Stacked vs. Single-Limit UM/UIM Coverage in Texas

By the FigureMyTax Editorial Team · How we calculate

Stacking adds the uninsured and underinsured limits of several vehicles or policies together. The Texas statutes we read do not say whether it is allowed. They require UM and UIM coverage and set how UIM pays, so your policy and Texas court decisions decide.

What stacking means

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

What Texas law says

Tex. Ins. Code 1952.101 requires UM and UIM coverage in every auto liability policy unless an insured named in the policy rejects it in writing. Section 1952.106 says UIM pays all amounts you are legally entitled to recover from the underinsured driver, not to exceed the policy limit and reduced by the amount recovered or recoverable from that driver's insurer. Neither says anything about adding limits across vehicles or policies.

What we did not read

We did not read Texas court decisions on stacking, so we cannot say how courts treat several limits or several vehicles on one policy. Ask your insurer in writing and an attorney.

A worked example

Suppose you have two policies with $100,000 and $50,000 of UIM, the other driver's insurer pays $25,000, and your damages are $250,000. Applying the statute's wording, your damages are capped at your limit and then reduced by the other payment, so $100,000 less $25,000 is $75,000. If a second limit also applied, it could be $125,000. Try your own numbers in the Texas UM/UIM stacking calculator.

What to check

Look at the declarations page of each policy and which vehicle you were in. See what the statutes say and leave open and how Texas UM and UIM work.

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