You don't have to be a car insurance expert, but you should know the basics of your car insurance policy. This is important because if you ever have to file a car insurance claim, you will know what you are entitled to and what your policy limits are. There might also be changes you can make to your policy to save yourself some money.
Auto Insurance Policy Declarations
This part of your policy is unique to you; it contains the personal facts for drivers in your household such as name and address, make and model of your vehicle(s), vehicle identification number(s), policy number and policy duration. It also contains the basic type of coverage you purchased and your policy limits and deductibles.
Coverage Parts/Insuring Agreement
This section outlines the coverage options and coverage limits that you purchased, such as liability, medical, collision and comprehensive. This section basically outlines what your insurance company promises to provide in return for your payment, based on the coverages and coverage limits you selected.
Auto Insurance Policy Exclusions
Exclusions simply detail what is not covered by highlighting your policy's limitations. Combined with the section above, this ensures that you know exactly what will be covered when you make a claim. It also shows you some possible deficiencies that you might want to correct down the line.
Auto Insurance Policy Conditions
This is where the legal responsibilities of both the insured and the insurer are listed, including premium payment obligations, steps to filing a claim, and procedures for resolving disagreements.
Auto Insurance Policy Definitions
This section defines terms and outlines the rights of the policyholder and the insurance company. This section is often referred to as the "fine print."
While these five points are typical to insurance agreements, the name of each section might differ slightly from company to company. When you decide to shop around for auto insurance; use InsWeb's online auto insurance quote form to compare multiple auto insurance quotes.
