Automobile Insurance: The Policy

A common mistake when shopping for automobile insurance is looking only at the price between two policies Policies differ from policy to policy and company to company 5 parts to an insurance policy: DeclarationsCoveragesExclusionsConditionsDefinitions

Declarations Lists important personal policy information and is unique to each individual insured Contains personal information: nameaddress vehicle make and model vehicle identification number types of coverages policy limits deductible amounts

Coverage Parts/Insuring Agreement Outlines the coverage options and coverage limits purchased In short, what your insurance company promises to provide in return for your payment, based on the coverages and coverage limits selected

Exclusions Details what is not covered by the policy Examples: Intentional damage to your own vehicle Damages caused while vehicle is used as a delivery vehicle

Conditions Define the insured’s and the insurer’s duties that, under the terms of the policy, must be fulfilled Includes: premium payment obligations steps to filing a claim procedures for resolving a claim

Definitions Explains specific terms used throughout the policy Examples: “You” or “Your” refers to the “Named Insured” “We” or “Us” or “Our” refers to the insurance company “Family Member” refers to a resident of your household

Automobile Insurance: Accidents Chances are even if you are never in an accident you will witness one What should you do if you are involved in an accident?

Steps to take after an accident Help anyone who is injuredHelp anyone who is injured You have an ethical and legal responsibilityYou have an ethical and legal responsibility Notify the policeNotify the police Prevent further accidentsPrevent further accidents Protect the accident sceneProtect the accident scene Record informationRecord information Exchange information with the parties involvedExchange information with the parties involved Take note of time, location, weather, and road conditionsTake note of time, location, weather, and road conditions

It is important that the accident is reported promptly to the insurance agent or company The policy will guide the insured on the correct steps to take to report the claim The company will guide the insured through the process Filing a Claim

When you are liable for an accident The insurance company covers the loss up to the policy limitsThe insurance company covers the loss up to the policy limits Your insurer represents you if you are suedYour insurer represents you if you are sued Your insurer has the right to settle any legal action without your permissionYour insurer has the right to settle any legal action without your permission Your premium may riseYour premium may rise Insurer has the right to cancel your policyInsurer has the right to cancel your policy If the losses exceed the policy provisions, the insured is responsible to cover the excessIf the losses exceed the policy provisions, the insured is responsible to cover the excess Filing a Claim