Understanding Your Auto Insurance
For many car owners, auto insurance is one of those things that you buy but don't really think much about. In fact, many people simply call and say that they just want full coverage without really understanding what that means. This can leave you in a situation where you have an auto insurance policy that you don't really understand. If this sounds like you, it's important that you take the time to fully understand what your auto insurance policy includes, or doesn't include, before you find yourself needing it. Here's a look at the basics that your auto insurance company wants you to know about the paperwork for your policy and what it can tell you.
The Policy Summary
The first page of your auto insurance policy is the summary page. Often titled "Declarations," this page is an overview of your personal information, the details about the car, the policy period and premium, a list of the coverage options you've selected, and any discounts or surcharges that might apply to your coverage.
This page is your best place to start when it comes to understanding your insurance coverage. In fact, you should always read your policy's declaration page when you receive it. This is the time to ensure that your personal and contact information are correct, the car's VIN number and details are correct, and the premium reflects what you were expecting.
Additionally, review the policy coverage lines that are listed on your summary page. As a driver, you need to understand what coverage you have as part of your policy so that you know when your insurance may provide protection.
The next section of your auto insurance policy is usually a couple of pages. It includes the details of the coverage lines that appear on your declarations page. On these pages, you'll get a good idea of the types of losses that will be covered under each of those coverage lines. You'll also be able to see what your deductible is for each of those coverage lines. Make sure that your deductible is one that you can reasonably afford if you are faced with a covered loss.
You should read your coverage details carefully. This section of your policy is important because it helps you understand when you can call your insurance company for coverage. Take the time to ask your insurance agent any questions you may have when you review your coverage details so that you can be confident in your understanding.
Policy Coverage Exclusions
One auto insurance policy section many car owners don't read is the policy exclusions page. Unfortunately, this page is also very important. As a car owner, you need to understand what types of losses won't be covered under your auto insurance policy.
In some cases, you may be able to add a rider to ensure coverage under some of those exclusions. For example, most policies exclude coverage if you use your car for a ride-share program. You can opt for a commercial auto policy to eliminate this exclusion. In other cases, you may find that intentional or deliberately irresponsible acts, as well as many catastrophic events, will be excluded from coverage.
Talk with your auto insurance agency, such as LA Insurance, today for more information about your policy.