Why does auto insurance stacking only cost a few bucks extra?

I was renewing my insurance policy with my agent, and she told me that I could increase my coverage through stacking. Why does this only cost a few bucks more a month, even though the coverage increases by tens of thousands of dollars?

Apr 28, 2021
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Eric Schad
Answered at Apr 28, 2021
“Stacking policies is when you combine limits for uninsured/underinsured motorist coverage for multiple vehicles to increase your maximum coverage. It’s currently legal in 32 states.
To answer your question, stacking is relatively cheap because of the perceived risk to the insurance company. You’re probably more likely to get in an accident that requires a $20,000 payout vs. a $70,000 payout, so offering stacking in exchange for a few extra dollars a month is worth the risk to the insurer.
Because it costs so little money, stacking can offer excellent coverage without breaking the bank.”
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