What to Expect in a Car Insurance Policy

All drivers should know they are supposed to have a car insurance policy (or other form of financial responsibility), but many who are new to driving or are about to start driving may not be very familiar with what a policy entails. Perhaps it would help new drivers feel more at ease to purchase a policy if they knew what to expect before the actual purchase. No matter what a person is going through, it is easier to deal with when they know what’s ahead instead of trying to do something for the first time in the dark.

The Declarations Page
The declarations page is the part of the car insurance policy that contains all of the information about the policy purchased, including who purchased it, what vehicles are listed, etc. This page is an easy reference page for the policyholder and they can refer to it to refresh their memory of what they’ve purchased or when they’ve been in an accident and need to know what’s covered.

Names – the declarations page contains the names of the policyholder, the members, and the name of the insurance company. Also listed with the names are the person’s contact information, such as residential address and phone number. These names are listed so there is no confusion about who is and isn’t on the policy.

Policy Number – the policy number is listed on the declarations page. This number is what each customer of that insurer is referred as first, since there are some people with duplicate names. To easily file a policyholder’s information and refer to them quickly, the insurer assigns a number (which can be mixed with letters). Policyholders will need this number whenever they contact the insurer by phone or on the website.

Policy Period and Term – these listed dates are the length of the policy and the dates the policy is effective. Most insurers will automatically renew the policy when the term ends, but not always. Any accident related damages that occur outside of these starting to finishing dates will not be covered under the policy.

Vehicle Description – also on the declarations page is a description of each vehicle that is insured on the policy. The make, model, and year are in this section of the page, as well as the VIN number and age of the car is usually also present in this section. The garaged address is also listed in this section or underneath. It shows the address of where the vehicle is stored when not in use. There is usually a discount given for vehicles that are in a stored and locked facility, and the address of this location is needed. It does not have to be the same as the residential address.

Coverage and Premium – In this section is listed the coverage options that have been purchased, the amounts purchased, the deductible, and the cost of the premium. This part is what is most confusing to policyholders. First, know what liabilities are and then the names of the optional coverage that is offered by the insurer. Once a driver knows these definitions they will be able to read through this section easier and with better understanding.

Endorsements – endorsements listed on a declarations page are the other options that have been purchased and added to the policy. Not everyone adds endorsements, but they should be looked at to get an idea of what is offered by the insurer.

Signature – this is where the policyholder signs to acknowledge the agreement of purchase between the insurer and him or herself. Without this signature and date, the policy is not valid. When purchasing a policy online, the insured often uses an electronic signature by typing in their initials, full name, clicking a box, or other way deemed appropriate by the insurer.

In addition to the declarations page, insurers will usually include explanations or terms of what each coverage purchased are that have been purchased. Each insurer’s terms may vary from one another.