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This is the first page you want to look at. It will list what coverages you have and which ones you do not. If a coverage is not listed here, then you do not have that coverage. If a name is missing, then that person is not a policy holder (different from an insured, she could still be an insured).
If the vehicles are not listed, then they are not insured! Or if the vehicle ID numbers or VIN numbers have mistakes on them, then there is no coverage. My point: this is a very important page (pages in the case of many vehicles).
When you are buying insurance, the declarations page is what the agent will be showing you. You must make sure that there is no mistake in any of its lines. I mean this. You do not want to be denied coverage because you own a Toyota Truck, but somehow you are paying for a Toyota Car.
This happens very often, and even if the insurance company agrees that this is a good faith mistake, it can take up to months to determine if they pay or not (most of the times they do not).
This page controls the entire claim between an insured and an insurance company. So if you do not have your declarations page, you will not be able to read your policy as you do not know exactly how are you covered. Please contact your agent and have your up to date declarations page. This is very important. It is better to have it handy than be calling your agent or your claims adjuster to send you a copy the day of the accident. When they are investigating a claim, they might take forever to do this. This will give them more advantages over you when negotiating. Do not allow for that.
A declarations page looks like this:
The first page will list the drivers, the policy period, drivers listed, and drivers excluded. What vehicles are covered, and what lien holder the insurance company will protect, so if you do not have a lien holder (a bank lending you money to pay for the car) then make sure you point that out to your agent. See more on financial responsibility clauses.
You should pay attention here to what drivers are excluded. If your son or daughter is listed here, then coverage will apply to any person driving your car except for you son or daughter. Some agents have been very clever by selling you insurance and then excluding you from coverage.
This is clearly illegal, but I have seen it happen. Please read this carefully. Compare your Vin Numbers and assure yourself they are correct.
The following page of the Declarations Page is the coverage attributed to each vehicle. So, in the case above, there will be a page for a 1998 Suzuki Sidekick, and the next page will be a 2005 Honda Accord.
In the pictures above you can see actual coverages listed. In this particular case, coverages for both vehicles are the same. But your policy could be very different. Coverages are attached to the particular vehicle.
This particular policy has Liability limits of 100,000/300,000 for bodily injury. This means that if you hurt someone in a car accident, then the injured person will be covered up to 100,000. If you hurt two people, then each will be covered up to $ 100,000 ($200,000).
If there is a third person injured, then the same logic applies, $100,000 of coverage for that third person (total of $300,000). But the second limits “kicks in” at $300,000. The insurance company will pay the maximum of $300 regardless of how many people are in the vehicle.
The declaration page also shows a limits for property damage, in this case the most the insurance company will pay is $50,000. If the insured hits a house, or a very expensive chopper, then anything above and beyond of will come out of the insured pocket!
Note that there is no deductible for liability coverage. The words “not applicable” appear under this heading. This means the insurance company will pay 100% of the damages up to their liability limit. You do not have to pay anything for anybody’s damage or injury.
Read more about Liability Coverage.
The next heading down is Personal Injury Protection. Here the declaration page sets all the limits and terms that will govern the auto insurance policy. In this case, medical expenses will be covered at $10,000 per person. There are no limits on how many people can be covered or a maximum dollar amount like in Liability Coverages. Note that there is no deductible noted. Again, the insurance company will pay 100% of the medical expenses you incurred.
Read more on Personal Injury Protection Coverage.
The next coverage is uninsured or underinsured coverage. It lists limits for Uninsured Motorist Property Damage,
click here,
The next coverage is uninsured or underinsured coverage. It lists limits for Uninsured Motorist Property Damage and Uninsured Motorist Bodily Injury,
click here,
Here the limits are against per person or per accident depending on which coverage you are seeking.
The declarations page then moves into First Party Coverages or coverages to your auto. Collision, Comprehensive, and rental coverages are put forward. The deductibles and limits that will apply depending the type of loss. Note that the coverages to your car are only covered at ACTUAL CASH VALUE. This means that they will depreciate your car!
It is important to remember that this declarations page does not define anything or explain duties and responsibilities of the parties. That will only be explained in the auto policy itself. But if you do not understand your declarations page, then you cannot read the sections that apply to you!
Now that you understand the declarations page, then you can read your Auto Policy. Click here for more.
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