Reading the Auto Insurance Policy

Part II

You see how the word �INSURED� was defined in the auto insurance policy under the Liability Coverage section. Let us move to the definition of the word �INSURED� under the Personal Injury Protection section: �You and any resident relative sustaining bodily injury while in, on, getting into or out of, or when struck by, an auto or trailer.� Do you see the difference here. An insured does not need to be using an insured auto! He can just be using any auto. Also, do you see the word, when struck by.

This means that if you are hit on the street by any car, then you are an insured under your own auto insurance policy, even if the accident happens in another country! Also, if you hit a pedestrian, then the pedestrian is an insured, but he was stuck by an auto (your car!). The pedestrian will have Personal Injury Protection coverage in your own policy as a first party!

Do you see how the definitions change drastically!

Then you need to move on to Exclusions. Here they take away coverage. For example, the exclude pedestrians struck by an insured auto if the accident does not happen in the state the policy was written on (the fist page or front page will answer which state). So the definition will include pretty much every one, but the exclusion will restrict the coverage.

So how do you read an auto insurance policy?

1. Declarations Page.

2. Go to section of the coverage that you are seeking.

3. Read the Insuring Agreement.

4. Look at the �specific� definitions on that section.

5. Look at the definitions on the beginning of the policy.

6. Look at the exclusions

7. Look at the ENDORSEMENTS.

Now you can decide if you have coverage or not.

Read Part II of this page.

To accurately read your auto insurance policy you need to follow steps 1 to 7. Step 7 is read your Policy Endorsements. Click here for more information.

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