Understand Your Auto Insurance Policy

Top FAQs for Understand Your Auto Insurance Policy

Auto insurance basics—understanding your coverage | III

The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.

But to make the best decisions about purchasing other types of auto insurance coverage you might need, you’ll want to understand what’s covered, what’s not covered and what’s optional. In addition to understanding types of coverage, you’ll also want to consider coverage amounts.

Here’s a rundown of the types of coverage available—some are required; others are optional; all are priced individually (a la carte) to let you customize coverage amounts to suit your exact needs and budget.

Property Damage Liability — This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.

Uninsured Motorist Coverage — Reimburses you when an accident is caused by an uninsured motorist—or in the case of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.

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How to read (and actually understand!) your auto insurance policy

Investing some time understanding these important pages could save you some serious hassles after an accident.

Ashlee, a former managing editor, insurance, at QuinStreet, is a journalist and business professional. She earned an MBA in 2014 with a concentration in finance. She has more than 15 years of hands-on experience in the finance industry. Read full bio >>

At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain our editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria.

Auto insurance policies are confusing and boring documents filled with legal jargon that can be an absolute nightmare to read. Your policy is a legal contract binding the insurance company to perform specific actions under certain circumstances for an agreed upon price. Insurers want the contract to be as specific as possible, which is why policies are so detailed and written in legalese.

Resist the temptation to gloss over your insurance, because understanding your insurance policy can help avoid costly coverage gaps or frustration with your insurer after an accident. As the saying goes: an ounce of prevention is worth a pound of cure.

“The declaration page ‘declares’ what coverages you have elected to have on your policy and which you have declined,” explains Carole Walker with the Rocky Mountain Insurance Information A-sociation. “It also includes details about coverage levels, deductions, named drivers and the price you are paying for each coverage.”

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How to Read and Understand Your Auto Insurance Policy | Freeway Insurance

Category: Of An Insurance Policy Understand Your Auto Insurance Policy

Are you having trouble understanding your auto insurance policy? Here's an explanation of how to read an auto insurance policy and make informed car coverage decisions.

For those unfamiliar with car insurance, reading and understanding your auto insurance policy may feel like hard work. Even after an agent has walked you through your policy, it can still seem like too many words to bother with reading.

And, there aren’t many terms you’ll need to understand in order to make sense of your types of coverage. Many of those terms can be found in your insurance policy, the document detailing your insurance terms and conditions.

Standard insurance policy terms are common to all policies. We say standard, but there may be some differences between providers. Still, insurance policies are legal contracts and must outline specific requirements common across all providers, so look for these exact terms or something very close.

Your insurance policy will typically be subdivided into a few primary sections. Once you understand these sections, most of the mystery of an insurance policy will disappear, making you better prepared to understand your auto insurance policy protections and become a better insurance shopper.

An insurance policy’s declaration page is usually its first page. It summarizes the policy details, containing the most useful policy information so that there is no confusion about the auto liability coverages and limits, deductibles, and the policy’s effective dates. This is also some of the same information present on your wallet-sized insurance card, readily available if police should ask for it.

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What is covered by a basic auto Insurance Policy? Understand the Coverage for your Car

4:34 - 2 years ago

What is covered by a basic auto Insurance Policy? Understand the Coverage for your Car #carinsurance #autoinsurance ...

How to Read and Understand Your Auto Insurance Policy - Blog

In the event of an accident, your auto insurance policy can make all the difference. Unfortunately, most drivers don’t know how to read their policy, much

And if you don’t fully grasp your policy, you may encounter some nasty surprises in terms of coverage. Alternately, you may be paying way too much money for coverage you don’t really need.

This is likely the first page of your policy and should clearly be labeled as “policy declarations” or “declarations page.” This page will offer important information about your coverage, cost, deductions, and the names of those on your policy.

While the exact information may vary, most declaration pages will have your personal info, the names of drivers on your policy, the vehicles insured, and the coverage schedule (which includes coverage info as well as info about deductions and premiums). The declaration will also have information about your policy period, discounts, and surcharges (depending on your driving record or recent insurance claims).

When should you review your insurance policy? There is no “wrong” time to review key information. However, it is absolutely critical to review your insurance policy after you make any changes to it (for example, after making changes to prepare for your teenage driver hitting the road).

After you make a change, you should get a notification from your insurance carrier. If you have not received such a notification after a week, then call them to confirm the changes have been made.

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Guide to Reading Your Car Insurance Policy | Baja Auto Insurance

Category: Car Insurance Policy

Understanding your auto insurance policy can sometimes be confusing. Use our guide so you can read all the details of your policy with ease.

But understanding your car insurance policy shouldn’t require an advanced degree. That’s why we’re here to walk you through the basics of a policy so you’ll know exactly what to look for.

That said, the industry uses common insurance terms to make things easier whether you’re buying a policy in Texas or Alaska. This means that you’re likely to see the same document structure across all providers. Some of the sections may be in a different order, but the information below is what you can expect in your policy packet.

Think of the car insurance declaration page as the TL;DR. It provides a great summary of all the important aspects of your policy. That way, you can double-check and make sure there aren’t any mistakes in your coverage, limits, deductibles, and start and end dates.

Keep in mind, this isn’t all the info on your policy. Otherwise, what would be the point of the remaining pages? So remember to review those items carefully to make sure everything looks right to you.

In the agreement section, your provider will outline the stipulations of your contract. This is the section that says your monthly premium pays for your insurance coverage. Paying your premium isn’t a legal obligation, but you will also lose your coverage if you stop paying it.

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Understand Your Car Insurance Policy | DMV.ORG

Category: Understand Your Insurance Policy

Learn about the common sections that form your car insurance policy.

From the car insurance coverages and limits you choose, to the cost of your premium, your policy details everything about your car insurance. Generally speaking, car insurance policies are broken up into 5 sections.

This section of a car insurance policy, also referred to as the insuring agreement, is a detailed list of the coverages and limits you and your company have agreed to be included in your policy.

An example of a common auto insurance exclusion is a named driver exclusion. This means simply that a specific driver is excluded from your policy. You don’t pay to cover him, and in return, he has no coverage to drive your vehicle.

Beware: This section has a bit more of a legal tone, so it may be harder to read. If you have any questions about the above, make sure to ask your car insurance agent.

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How To Read and Understand Your Auto Insurance Policy | Vern Fonk

Category: Insurance Policy

Auto insurance policies can be intimidating, full of jargon that’s hard to follow. We’ll show you how to read and understand your auto insurance policy.

Auto insurance policies can be intimidating, full of technical terms and jargon that’s hard to follow. In this post, we’ll show you how to read and understand your auto insurance policy.

Before we get into the nuts and bolts of a typical auto insurance policy, you should understand why it’s important. For example, a good policy can help you in several ways by:

In this post, we’ll guide you through the process of reading an insurance policy so you’ll know what to look for, what to note, and what details you need. Our insight will help you learn how to read and understand your auto insurance policy.

An auto insurance policy typically consists of five sections. The first four identify who the insured driver or drivers are, outline the coverage terms, and note the exclusions as well as the conditions. The fifth section usually contains additional miscellaneous information that’s pertinent to your policy.

Typically the first section of the policy, the declaration page, names you as the insured driver along with any other drivers who are protected by your policy. It also identifies the risks the policy covers, its limits, and how long the policy is valid.

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Understanding your car insurance policy contract - Nationwide

Category: Insurance Policy

We know. Reading an insurance policy isn’t exactly like curling up with a good book. It’s a fairly complex document that tries to explain all the things you’re covered for, and what’s excluded when a loss occurs.

The policy declarations page – often called the “dec(k) page” – is basically the first page of the policy package. This page states who is insured and the time period the policy provides coverage. It also gives the general information such as a description of what’s insured, the coverages and primary coverage limits.

This section gives you the definitions of words and phrases you’ll see in the policy. For example: “motor vehicle” and “deductible” are two terms often found in an auto policy. Such defined words may appear in bold print throughout the policy. You can also browse Nationwide’s insurance glossary for any unclear terms you’re looking for.

This section describes the specific insurance provided. It lists what property is covered and for what damages. For example, a boat owner's policy may cover direct physical loss or damage to the boat and motor, portable equipment and other specified property. It can also provide liability coverage.

These describe the coverage limits or how coverage may be eliminated depending on how a loss occurs. Insurers may allow policyholders to buy back coverage for some exclusions for additional premium (see endorsements below). For example, earthquake coverage may be excluded for people who live in an area where earthquakes are unlikely to happen. However, if a customer would feel more comfortable with the coverage, they could buy it back.

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Understanding your Auto Insurance Policy Documents

Just understanding how your auto insurance policy works is not enough. You also have to be aware of the provisions in your policy document.

Even if you do have a pretty good handle on the details of your automobile coverage, trying to make sense of the actual policy document can be a different ballgame altogether.

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Your automobile insurance policy is a binding legal contract.But don't let that keep you from reading it, because it's actually very important to do so.Your personal auto policy, or "PAP", will have five distinct parts (scroll down or click to see the definitions): declarations insuring agreement definitions conditions exclusions

This section will likely be the first thing in your auto insurance policy, and it's almost always its own section. Unlike the rest of your policy, it will have been prepared especially for you.The declarations lists all relevant information about your persaonal auto policy. This includes: the year, make,and model of your car its VIN (vehicle identification number) the name of the insured (you or you and your spouse) the dates the policy is effective the policy's coverage types and limits the policy's cost (your premium)Sometimes other information is included (like whether you use the vehicle for business or for pleasure). And if your car is financed, the lender who holds the lien on the vehicle will be listed here as the "loss payee". (If the car is "totalled", they'll need to be reimbursed.)

The type and extent of each coverage you've purchased will be described in detail here. This section will also outline exactly who is covered under each provision. It's a long and complicated section, but it's probably the most important part of your auto insurance policy.

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Understand the Critical Aspects of Your Auto Insurance Policy

Category: Your Auto Insurance Policy Auto Insurance Policies

Our Philadelphia car accident lawyers seek justice for clients injured in accidents. Let us help you understand your auto insurance policy.

Auto insurance policies are typically lengthy, and it is natural to want to get through the paperwork quickly. It can be easy to skip over or fail to review forms carefully, especially if you are unaware of the value of certain coverages. Pennsylvania offers you many options when you are selecting your auto insurance policy.

If you choose full tort coverage, it means that if you are injured in a car accident, you can sue the other driver who was at fault for non-monetary damages, such as pain and suffering. Auto insurance pays for medical bills and damages, but without full tort coverage, you cannot seek compensation for a loss of quality of life from the accident. If you choose limited tort, you forfeit the right to compensation for pain and suffering.

Limited tort can seem appealing at first because it immediately saves you money on your monthly statement. However, when you are injured in an accident and want to recover for your pain and suffering, you will likely realize that the savings you received when you signed your policy was not worth it. Saving a few dollars a month cannot outweigh the ongoing emotional suffering and life-changing effects of a car accident. It is more expensive to have full tort coverage, but the value of the added rights and protection is immeasurable.

Insurance companies are delighted when they see that a person injured in a motor vehicle accident has selected the limited tort option because they can argue that the injuries are not serious to avoid making payments on a claim. Additionally, insurance companies know that only economic damages, such as hospital bills and any wage loss, will need to be paid. This relieves the insurance companies of the striking driver from negotiating for pain and suffering damages and reduces the values of the injured person’s claim significantly.

Uninsured motorist (UM) and underinsured motorist (UIM) insurance coverages are not required to be on your auto insurance policy. Though they can be waived or not purchased, they are two essential coverages on your policy that shield you in the event of a car accident.

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Understanding Your Insurance Policy – Chalaki Law

Category: Your Auto Insurance Policy

“I always ask people for their auto insurance policy and the first thing they pull out is their auto insurance card. The insurance card indicates that you have valid proof of financial responsibility. As they are pulling the card out, they tell me that they have full coverage. The term financial responsibility refers to an individual having an auto insurance policy to cover most damages in case of an incident. However, the insurance card does not provide any information as to your auto insurance policy. Your auto insurance policy along with the declaration page indicates what kind of insurance coverage you have. “Full Coverage” is a term used by insurance companies and insurance adjusters to make you believe that you, your property and your loved ones are fully protected. However, this is commonly not the case. In order to protect yourself and your loved ones read the article below. This article will help you understand your auto insurance policy.”

Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car and pays for the other person’s damages when you are at fault in an accident. The law currently requires minimum liability coverage of $30,000 per injured person, $60,000 for everyone injured in an accident, and $25,000 for property damage (30/60/25).

The declaration page on your auto insurance policy indicates the details of your coverage. Coverage is the amount of money the insurance company will pay in case of an incident. The amount of coverage you want to purchase is different if you use your vehicle for personal use rather than commercial use. The language in your auto insurance policy may limit who can drive your vehicle. Also, it may limit the use of the vehicle for certain a purpose. In some cases, the insurance companies expressly exclude high risk drivers from the policy to write a cheaper policy. For example, if you are an Uber driver some of the insurance companies now require that you purchase a commercial auto insurance policy.

Your auto insurance policy language may limit who can drive your vehicle besides you. They may require additional information as to the people who are going to be permitted to drive your vehicle. In case of an incident the auto insurance company may deny you coverage because the individual was excluded on your policy. Some insurance companies specifically require you to provide your spouse’s information in order to issue you a auto insurance policy.

You want to make sure you are buying a Standard Texas policy and not non-standard auto insurance policy sold by companies like ACCC, Baja, Elephant, Fred Loya, and other smaller companies.

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5 phrases and terms to understand your auto insurance policy | Broccas

Category: Auto Insurance Policy Your Auto Insurance

You know if you have a car, you need insurance. But do you know what is in your auto insurance policy that protects you? Yes, it may look like a lot of legal jargon, but there are several key points in your auto insurance policy you should go over with your agent and understand very well before purchasing your car insurance. This is because understanding your auto insurance policy doesn’t have to be complicated, just pay attention to a few terms that you should look for in all that paperwork that you get from your agent:

What’s your “policy period” – A policy period is when your insurance policy coverage begins and ends. A policy period can range. Some companies offer six month policies, other’s offer coverage for a year at a time.

Limits and coverages – Limits and coverages tell you the types and amounts of coverage available. On an auto insurance policy, it would cover things such as bodily injury and property damage liability.

Collision vs Comprehensive – Comprehensive insurance provides financial protection for your car from loss to due to fire or theft. While collision insurance protects you from things like hitting a car or backing into a pole.

Underinsured vs. Uninsured – Uninsured or underinsured motorist coverage (optional in some states) is for your protection. Uninsured motorist coverage applies for injuries resulting from an accident with a hit and run driver, or a driver who does not have auto liability insurance. Underinsured motorist insurance is for an accident with another driver who doesn’t have enough auto liability insurance coverage to cover the entire cost of your injury claim.

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How to Read And Understand Your Car Insurance Policy Documents - DavidPope

Car insurance is an important investment that drivers and vehicle owners make to ensure the health and safety of themselves […]

Car insurance is an important investment that drivers and vehicle owners make to ensure the health and safety of themselves and those around them. In most states, you are required by law to acquire auto insurance coverage before driving or purchasing a vehicle. Because insurance coverage options can be complex and may vary greatly from policy to policy, understanding your coverage is not always as simple as you may expect.

If you have questions about your coverage or policy, one of the best places to look for answers will be your insurance policy documents. Understanding your policy documents will empower you to make comprehensive, cost-effective decisions regarding your car insurance coverage.

Like most types of insurance, you likely don’t think about your coverage until something unexpected happens. This mindset is common, but it’s often not the best course of action in the long run. In general, the best time to read and understand any auto insurance policy is before you find yourself involved in an auto incident. When you do this, you can feel confident that you know the facts and figures of your insurance policy before you need to use it.

While you may feel tempted to choose the least expensive policy and leave it at that — especially if you’re a first-time policyholder — you may want to consider many common coverage options. Remember, auto insurance isn’t just a legal obligation. It can provide you with crucial financial and legal protection should you be involved in an auto accident. When reading your auto insurance policy, keep an eye out for common components like limits, exclusions, liabilities, collision insurance and more.

While the exact car insurance policy documents you have will vary based on the specifics of your policy and coverage, some common components make up most auto insurance policy documents in America. These components include the following:

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Understanding Your Auto Insurance Policy | IMT Insurance

Category: Auto Insurance Policy

Understanding your personal auto insurance policy is not simple. As with most legal contracts, it contains a multitude of provisions and stipulations that can leave you bewildered and frustrated.

Understanding your personal auto insurance policy is not simple. As with most legal contracts, it contains a multitude of provisions and stipulations that can leave you bewildered and frustrated. This article summarizes the major coverages offered by your policy to simplify the process of purchasing personal auto insurance.

Before we begin, please allow us to add a disclaimer. This article only presents basic information about your policy. We would encourage you to review your individual policy for specific details on coverages, terms, limits, conditions, and exclusions.

As you navigate through the process of purchasing and learning about your insurance policy, don’t forget about your most valuable resource. An independent insurance agent is able to offer you more than just the coverages you need at a competitive price. These insurance professionals do a wonderful job of making the purchasing and learning process simple and easy to understand.

Personal auto liability coverage pays others for damages and injuries you become legally responsible for because of a covered auto accident. This section of the policy is comprised of both bodily injury coverage and property damage coverage. Bodily injury includes medical bills, loss of income, or pain and suffering while property damage generally involves damage to someone else’s auto, but it would also include a building or any other property damaged in an auto accident.

Most states require mandatory liability insurance on motor vehicles. Your liability coverage will apply up to the limit of liability that you have selected. Certain items such as legal fees and defense costs will be paid in addition to your limit of liability. Remember that you will be held responsible for your obligations arising from a covered auto accident that exceed your limit of liability coverage.

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Understanding Your Car Insurance Declarations Page

Partner Content: This content was created by a business partner of Motor1 and researched and written independently of the Motor1 newsroom. Links in this article may result in us earning a commission. Learn More

Say it’s been a while since you’ve needed to file a claim and you’re not entirely sure what the limits are on your insurance policy. Reviewing your insurance declarations page is probably the best place to start when you have questions about your insurance coverage.

In this article, we’ll examine what an insurance declarations page covers, when you may need one, and how to get a copy if you don’t have yours on file. We’ll also give our recommendations for the best car insurance companies if you’re interested in trying to find lower rates.

Why You Can Trust Motor1 At Motor1, we are dedicated to supplying car owners with the well-researched, fact-checked information they need to make sound decisions about auto insurance. Our team analyzes provider offerings and customer insights so you can feel empowered to make the best choice.

An insurance declarations page, sometimes called a “dec” page, is a one- to two-page overview of your policy. It’s found at the beginning of your policy documents and highlights the most pertinent information about your insurance coverage.

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Car Insurance Explained: Everything You Need To Know

Category: Insurance Policy

Some people don't understand the need for auto insurance, which can leave them personally exposed and cause significant financial problems in the event of an accident.

Some people don't understand the need for auto insurance, which can leave them personally exposed and cause significant financial problems in the event of an accident. Auto insurance is mandatory in nearly all states, except New Hampshire, which still requires financial responsibility. Here is our guide to car insurance explained to help you better understand the important of buying the right coverage.

Deductible: Your insurance deductible is what you pay out of pocket before your insurance pays anything. Your deductible applies in each claim, and your rates will be higher if you opt for a lower deductible.

Understanding your options for available types of insurance coverage is important when you are purchasing a new car or shopping around for insurance. Some coverages protect you, your passengers, and your vehicle, while others protect you if you cause injuries or damages to another party. According to Allstate Insurance, the six most common types of coverage you can purchase are:

According to Progressive Insurance, some of these coverage types are mandatory, while others are optional. Familiarize yourself with your state's insurance regulations so you can narrow down your options when insurance shopping.

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Understanding Your Auto Insurance Policy - insureuonline.org

Category: Insurance Policy

An insurance policy is a legal contract. Your policy begins with a declarations page. This identifies the policy number and provides important information including the policy term, …

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What is covered by a basic auto insurance policy? | III

Collision coverage pays for damage to your car resulting from a collision with another car, an object, such as a tree or telephone pole, or as a result of flipping over (note that collisions with …

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Auto Insurance Definitions & Key Terms: Understand your policy

Category: Insurance Policy Your Insurance

Aug 27, 2020 · An insurance policy that covers you for bodily injuries to other drivers or pedestrians that result from an accident determined to be your fault. Your insurance company …

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