The Declarations Page

This page outlines what coverages you have and what limits. A mistake on this page can be devastating!

The declarations page is the document that list names, vehicles, vehicles ID number, coverages, limits, deductibles, discounts, etc. This document is the “bottom line” of your coverage and it is usually one page.

This is the first document you want to look at. It will list what coverages you have and which ones you don’t. If a coverage is not listed here, then you do not have that coverage (even if your agent told you that you were covered). If a name is missing, then that person is not a named policy holder (different from an insured, she could still be an insured).

If vehicles are missing, then those vehicles are uninsured! Or if the vehicle identification 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 months to determine if they will pay or if they will deny coverage (most of the times they deny).

This document controls the entire claim between an insured and its insurance company.

If you do not have your declarations page handy, you will be unable to read your policy because you will not know what is covered.

Contact your agent and have them provide you with an up to date declarations page before you have an accident. This is critical. It is better to have a copy on you records, than having to call your agent or your claims adjuster to provide you with one the day of an accident.

When the insurance company is investigating a claim, they might take a long time to send you this document.  It will give them more advantages over you when negotiating. You simply do not know (in writing) what is and what is not covered. 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 who is the lien holder the insurance company will protect. If you do not have a lien holder (a bank loan) then make sure your agent knows that. See more on financial responsibility clauses.

Pay attention 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 your son or daughter.

Some agents have been very clever by selling you insurance and then excluding you or your family members from coverage. In a dispute, it is your word against theirs.  

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.

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 and NOT A DRIVER (insurance follows the car).

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. It is a double limit.

The declaration page also shows a limit 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 $50,000 will come out of the insured’s 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 the Liability Coverage.

Note that there is no deductible noted. Again, the insurance company will pay 100% of the medical expenses you incurred up to $10,000. Read more on Personal Injury Protection Coverage.

The next coverage is Uninsured or Underinsured coverage. It lists limits for Uninsured Motorist Property Damage. Here the limits are apply to each person or each accident depending on which coverage you are seeking (property damage v. injury claims).

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 depend on the type of loss or claim that you have.

Note that the coverages to your car are only covered at ACTUAL CASH VALUE. This means that they will depreciate your car to your current fair market value, not what you paid for it.  

It is important to remember that the declarations page does not define anything or explain duties and/or the responsibilities of the parties.

These duties and responsibilities are explained in the policy jacket. If you do not understand your declarations page, then you cannot read the sections that apply to you!

Learn how to read your auto insurance policy
Auto Policy Declarations Page
The Actual Auto Policy Part I
The Actual Auto Policy Part II
Read your Policy Endorsements