Car Insurance
Auto Insurance Declarations
The auto insurance declarations page while discussing the topic of auto insurance, or while looking through the policy papers, new terms and information used can be confusing and add to the stress of understanding auto insurance. When reading through the policy, you’ll notice what’s known as the declarations page. This page is of vital importance, as it contains the most pertinent information you will need regarding your auto insurance policy. As you read through it, you will be given a basic outline of your policy, along with the insurer’s information and the driver’s information.
To break the declarations page down further, we’ll discuss each aspect presented on the page, and this is done in no particular order, meaning your declarations page may or may not have the same information in the same order listed here. First we’ll mention the auto insurance company’s information on the page. The declarations page will have the name of the insurance company, as well as their contact information including a phone number and address. If you need to contact the company, the information is readily available here and also on the insurance card that you should have somewhere in your car in case it is immediately needed.
You should find your policy number. Your policy number is a way the auto insurance company can identify you without using your name. This lessens confusion as there is typically more than one client sharing the same first and last names. A policy number can include numbers and letters together, or just numbers. You will need to know your policy number any time you want to contact the insurance company. You can also find your policy number on the insurance card.
Information regarding the coverage you have purchased is also included in the declarations page. The coverage you purchased will include the minimal requirements provided by your state, as well as any additional coverage options you felt the need to purchase. Bodily injury liability, property damage liability, personal injury protection, and uninsured motorist bodily injury may be some of the coverage options you purchased that will be listed on the declarations page.
The cost of each coverage you purchase for your auto insurance policy will also be listed on this page. The price of your policy is determined by individual factors, including the cost of coverage you added to your policy. If you carry additional coverage options past the state’s requirements, you can look at these “extra” options and decide if they fit into your budget, or if you can add more coverage for added protection.
Your deductible amounts may also be listed in the declarations page. A deductible amount is the amount of money you are willing to pay, out-of-pocket, when you make a claim to the auto insurance company. Any time you file a claim and expect the insurer to cover an accident-related cost, the insurer requires you to pay upfront a deductible. This amount can range from $250, to $1,000 or higher. The lower deductible you choose for your policy, the more expensive your policy premium will be.
Look for the policy periods on the declarations page to find out when your coverage begins and when it ends. You should also be aware that you have the option with the insurer to automatically renew your policy when it expires. This helps to avoid any time period of not carrying auto insurance, known as a policy lapse. It is illegal to drive a vehicle without proper auto insurance so it is vital that the policy always be in effect.
You will also notice your information, or the policyholder’s information, listed on the declarations page. Your name, address, and phone number will be listed on the page. It will also have information regarding the vehicle(s) you have insured with the company, such as the year, make and model of each vehicle. Always keep this information up-to-date with the auto insurance company so they can contact you easily with any questions they have or information they need.
Any changes, or endorsements, will also be listed here. Sometimes changes are made to a policy by the insurance company. If you have any questions regarding changes that were made to your policy without your knowledge, contact your insurer immediately.
When you receive your policy information in the mail, it is important that you read through the declaration page and put the proof of insurance card in your vehicle. Reviewing the declarations page will help you better understand your policy (if you don’t already have an understanding of it). If you decide you want to purchase more coverage, give your auto insurance company a call and see what they can provide you. It is always best to carry more coverage than less, as this will protect you and your assets if you are ever the cause of a major accident.
Other importance of reviewing your declarations page is to make sure it states you have the coverage you wanted to purchase. Just because an agent over the phone says you have such-and-such coverage doesn’t mean it will apply if that coverage is not marked on your declarations page. Whatever is written on your declarations page is the policy you have for the vehicles listed on the declarations page. Check the information provided on the page is correct before you are put in a situation (like an accident) where you need to file a claim and are expecting certain coverage.
You may think the declarations page is just one more nagging piece of paperwork, but in actuality it is the most important piece of paper that you have for your auto insurance. You will need to review your declarations page every time your policy renews to make sure no coverage was accidentally dropped or so you know your information is correct. Don’t disregard your declarations page as it comes in the mail or think of it as worthless because you think you already know what coverage is on your auto insurance policy.
