Understanding Your Auto Insurance Policy

Top FAQs for Understanding 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 Understand Your Auto Insurance Policy | Freeway Insurance

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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Understanding Your Auto Insurance Policy | Insursmart.com

Understanding Your Auto Insurance Policy and How It is arranged is explained in an easy to follow guide written for his customers by a Ohio insurance agent.

Understanding your auto insurance policy and how and why it is constructed in the way that it is will help you get the best auto insurance protection from the coverage you buy. An insurance policy is a legal agreement. Your auto insurance policy is a contract between you and the insurance company. You expect certain things from the coverage you buy and your insurance company expects things from you in return. We could spend hours going through the typical auto insurance policy but just understanding the major parts that exist in all auto insurance policies will help you understand your auto insurance. The acronym DDICCEE are the first initials of the major sections found in your auto insurance policy. I’ll explain them in detail in the following outline and they are not necessarily in the order you may find them in your policy (but it should be close).

The declaration page is a part of your policy. If it were not for the declaration page, most policies issued would be the same for everyone. You see, the declaration page personalizes the coverage provided by your auto insurance for your specific requirements. That is why we could say that every policy is about the same except what is different for each of us. In understanding your auto insurance policy you should know the things you should expect on your declaration page:

Many words have meanings that are slightly different in a policy than they have in other circumstances and situations. Since understanding your auto insurance policy requires you know that insurance is a legal document, if there is a meaning for a word that the company is relying upon, they will show the word and the meaning they intend for the term in the definitions section of the policy. In many insurance policies, when a word that is specifically defined is used in the policy language, that word appears in bold text so you know that special meaning applies to that word.

“In return for your timely payment of premium and your compliance with all the provisions of this policy, we agree to provide the coverage you have purchased.” OK, not quite what a policy says but it is the agreement in principle. But here is what actually constitutes the “Agreement” in the ISO PP 00 01 01 05 version of the personal auto policy. There may be different “insuring agreements” for different parts of your coverage.

“In return for payment of the premium and subject to all the terms of this policy, we agree with you as follows:” Pretty straightforward. Since the company is making the important promises you are paying for most of what follows these words describes the coverage and terms you have bought on your auto insurance policy.

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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 ...

Understanding your auto insurance policy

Reading an auto insurance policy is no fun. It's actually a legal contract, so it's a good idea to make sure you understand it. Start here.

You work hard to try and provide for your family. TruStage® understands that. We a-sist millions of people by helping protect the financial future of their loved ones with insurance policies designed to be affordable.

We want to make reviewing, paying and updating your policy easy and convenient. Here are all the things you can do with MY ACCOUNT, including connecting with our Customer Care team if you have questions or concerns.

Let's be honest—reading an auto insurance policy is no fun. After all, an insurance policy is actually a legal contract. It’s full of technical legal language and insurance jargon—it’s not exactly a page-turner. Still, it's a good idea to sit down and read your policy and make sure you understand it.

Your policy begins with a Declarations Page. This page lists the information that is unique to your policy. It indicates the policy number and provides important information, including the policy term, coverage limits, and information about the insured. If you bought the policy for your car, you are probably the named insured. This page may also contain the names of other drivers in your household, if they're covered under your policy. Also included is your complete legal address, which may not be the same as the address where you keep your insured auto. The address where the car is kept factors into the cost of your premium (the amount that you’re paying your insurer for the insurance coverage), but your legal address is where all correspondence about your policy will be sent.

If you took out a loan to purchase your car and you still owe money on it, the lender will be listed on the Declarations Page. Since your lender has a financial interest in your car, it is entitled to receive payment under your auto policy if your car is damaged, destroyed, or stolen.

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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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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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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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Understand Your Car Insurance Policy | DMV.ORG

Category: Understand Your Insurance Policy Car Insurance

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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Understanding Your Auto Insurance Policy

Category: Your Auto Insurance Policy

Have you ever read your auto insurance policy? Insurance professionals spend years learning to review and analyze coverage. It can take a lot of time and effort to work through all of the provisions.

Have you ever read your auto insurance policy? Insurance professionals spend years learning to review and analyze coverage. It can take a lot of time and effort to work through all of the provisions. Besides, as a typical policyholder, if you ever managed to read an entire policy, you’d probably find it pretty boring. Your auto policy is a contract. Like all formal agreements, the language can be difficult to interpret. Still, if you've ever filed an auto claim, you know that it’s important to be familiar with at least the coverage basics. You can begin by getting to know your Declarations Page. The Basics Your Declarations Page is the first page of your policy, so it’s easy to locate. It's an overview of coverage that answers the who, where, when and what of your auto policy. The information is so important, it’s the first thing the claim department reviews when you turn in an accident report. Who? The Policyholder: Your Declarations Page lists you and your spouse as the policyholder/named insured. This should accurately reflect the information you provided when you filled out the insurance application. Insurance companies make underwriting decisions based on the person they are requested to insure. If your policy Declarations Page lists the wrong “who,” it could mean that there's a mix up or a coverage problem. The Policy Number: Insurance companies maintain your underwriting records by a policy number that’s yours alone. That’s particularly important if you must report a claim directly to the company. They'll need your policy number to verify coverage and set up a claim file. Where? Policyholder’s Address: Where you live and maintain your cars is an important auto policy underwriting factor. If you live in the city, there are higher risks due to traffic, theft and accidents. If you live in the suburbs, you may have higher commuting mileage. If your declarations page has the wrong address, it's likely that your coverage and premium have been improperly evaluated. The inaccuracy can cause coverage problems down the road. When? The Policy Period: Insurance policies provide coverage for a specific period of time, which begins and ends at 12:01 am. If coverage begins on June 1, 2014, 12:01 am and expires at December 1, 2014, 12:01 am, and you didn't renew your policy, you won't be covered for an accident that takes place on December 1, 2014 at 12:02 am. What? Insured Vehicles and Schedule of Coverages: Your Declarations Page lists the year, make, model and serial numbers of the cars for which you requested coverage. Also included are the policy limits for collision, other than collision, bodily injury, property damage, liability or other coverages included on your policy. You'll also find a listing of any applicable deductibles. Just below the vehicle information you'll usually find your agents name, the policy form number and a list of any additional endorsements. It’s Important to Know Your Personal Auto Insurance Policy Your Declarations Page is a good place to begin a basic understanding of your policy. You should review the information as soon as your policy arrives and talk to your agent if it contains any inaccuracies.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.

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Understanding Your Insurance Policy

Category: Understanding Your Insurance Policy Insurance Policies

An insurance policy is a legal contract between the insurance company and the person, business or entity. Understanding your insurance policy is key to ensuring that you have the correct protection in the event of a loss. These legal contracts are understandably difficult to read, because they are developed by lawyers and meant to be legally binding. They are very specific in verbiage pertaining to coverage and limits.

When you choose to work with Bancorp Insurance, your dedicated agent team will ask you a series of questions based on your unique business or personal situation and help to find a policy to fit your budget and needs. They can also help explain the policy and why you need the coverage that is being recommended.

The agreement is the best place to start with understanding your insurance policy. It is going to contain a high-level overview of what is covered by the insurance agreement, including who qualifies as an insured, the basic coverage areas and limits of the policy, and the term.

The insured is the business or person(s) covered under the insurance policy. A commercial policy can contain multiple levels of insureds including the named insured, the extended insureds, automatic insureds and additional – by endorsement – insureds. Be sure to verify for your specific type of insurance that your policy notes all of the applicable insureds that could be involved in an accident or event. Understanding your insurance policy coverage listing the proper amount of insureds can save you from a claim not being covered in the event of a loss.

The basic coverages and limits listed in the agreement will vary slightly from a personal or business policy. For example, a personal home or auto policy would note the liability and comprehensive coverage limits along with any additional dwelling or personal effects coverage. The limits would also include the coverage area and term of coverage.

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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 |

Category: Your Auto Insurance Policy

Jun 29, 2021 auto, auto insurance, automobile, Car, insurance, insurance policy, Liability, Liability Insurance, Medical Payments, Medical Payments Coverage, MedPay, Personal Injury, Personal Injury Protection, PIP, policy, UIM, Uninsured Motorist, Uninsured Motorist Insurance

Something that we are definitely not taught in school as children is understanding Auto Insurance Policies. Did you know that there are different types of insurances within your policy, that some of them will pay out even if you are fault at for the accident, and that some types may have been removed without your understanding what they are only to save the insurance company from having to protect you if you are ever in an accident? Did you also know that the rules for insurance are different depending on the state that you are in? It can all be extremely confusing – but understanding what your policy really covers can help you plan for the future and keep you from skyrocketing bills should you ever be in an accident.

We have included some of the different types of insurances commonly found within policies that YOU need to be aware of below. If you don’t know if your policy includes any of these, make sure you speak with your provider ASAP so that you get the protection you need. Often, adding one of these components will cost no more than a few dollars per month.

This term is probably one that you are familiar with. Liability insurance covers the medical care for injuries caused to the other party of the accident. This could be a pedestrian that was hit in the crosswalk, or the driver of a car that you rear ended. For the other party to be able to utilize this insurance, YOU must have been deemed to be “at fault” for the accident. If you were deemed “not at fault” (i.e. the other party caused the accident), then they would not have access to your liability in order to pay for the medical care resulting from their injuries.

Personal Injury Protection insurance covers the medical care for injuries caused to yourself in an accident. This is also commonly known as “no-fault insurance” because fault is not a determining factor in utilizing this component of your policy. Which means, whether you caused the accident, or the other party caused the accident, you would still have access to these funds to pay for your medical bills and other a-sociated costs having to do with your accident. While this coverage does not extend to the other parties involved in the accident, it does extend to any passengers in your vehicle at the time of the accident.

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How to Read And Understand Your Car Insurance Policy …

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 …

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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 …

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Understanding Your Auto Insurance Policy - colawfirm.com

Category: Understand Your Auto Insurance Policy

Mar 06, 2014 · While insurance may feel confusing and overwhelming, there are a few simple pieces of information that will help to better understand your auto insurance policy. Most …

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Understanding Your Auto Insurance Policy - agordon.com

Category: Understanding Your Auto Insurance Policy

Understanding Your Auto Insurance Policy. A Breakdown of Each Coverage on Your Policy. Chances are if you look at your Massachusetts auto policy and don’t understand what the …

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Understanding Car Insurance Deductibles | GEICO

Category: Auto Insurance

How does an auto insurance deductible work? Let's say you have collision coverage, with a $250 deductible, and are involved in a car accident that causes $2,000 of damage to your …

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An Insurance Company For Your Car And More | GEICO

Call (888) 395-1200 or log in to your current Homeowners, Renters, or Condo policy to review your policy and contact a customer service agent to discuss your jewelry insurance options.

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New Jersey Car Insurance | Car Insurance in NJ | New York Auto ...

Category: Auto Insurance

We love that we can go beyond the standard insurance offering. As your provider of the best auto insurance in New Jersey, we are committed to bringing you the most comprehensive and …

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Stacked Insurance: Maximize an Uninsured Motorist Claim

Category: Auto Insurance Policies

Feb 11, 2019 · Example 2: Stacking insurance from two policies. Say you have coverage for two cars under two separate auto insurance policies, both with $50,000 in uninsured motorist …

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