What Your Auto Insurance Policy Actually Says
Posted on: 19 April 2022
If you have never ready your auto insurance policy, you may not understand the different sections involved. Your auto insurance agent will cover the basics with you and ensure you understand the different coverages and amounts. However, this does not mean each section will be detailed to you or that you understand what is there. Here are some of the key points your policy actually has and what your auto insurance agent wants you to know.
Declarations
The first section on most auto insurance policies deals with declarations. The basic concept of this section is to provide information about who has the insurance policy. It also goes over what date the policy starts and ends. It will also detail what type of insurance is on the policy. You will also find a quick summary of coverage amounts and any pertinent information about the policy. The policy number may also be found in this section. This is often the area of your insurance policy that is used to prove you have coverage when you are asked by your car financing company or by another entity.
Exclusions
This area is vital to understanding how the coverage works and under what circumstances. For example, you may be eligible for certain policy coverages as long as you are not the one at fault for the accident. However, if there are certain instances such as you are drinking and driving then the coverage would not apply. You will need to ensure you understand this section in order to make sure you know when you are entitled to coverage and when you are not. This will help cut down on confusion later and help you maintain your coverage.
Limitations
The limitations section of your auto insurance policy will discuss the limits of the funds for your coverage. For example, you may have a policy that covers $25,000 during an accident. However, if the bill for the damages is $30,000 then you will have to pay the additional $5,000 out of pocket. These kinds of breakdowns are listed in the limitations section.
These are just a few things you need to know about your auto insurance policy and what each section means. If you have any questions about your policy or you notice something you don't understand, contact your auto insurance agent. They can discuss the policy with you and explain any part of it you do not understand or need clarification on.
For more information on auto insurance, contact a professional near you.
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