Understanding The 5 Parts Of Car Insurance Contract

Car insurance is a plan that involves a car insurance company, insurance provider, and a policy holder. While it is important that your car insurance policy adheres to the legal guidelines of your state, it does not stop there.

It is essential to understand the information in your policy. You need to review your policy before you sign any document. You do not want surprises and confusions later on, just because you did not check your policy thoroughly.

Here are the 5 basic aspects of a car insurance contract that you should know before you sign and seal the deal.

1. Declaration Page

This part is about your personal information. It includes the following:

• Your name
• Address
• Policy number
• Vehicle identification number of all cars included on the policy.
• Makes and models of all vehicles on the policy
• Names of all drivers in the house

The Declaration page also includes your deductibles, coverage limits, and time period of your policy.

2. Insuring Agent

In this section, it provides information about your insurance plan. It contains the list of every type of coverage you buy a long with their respective limits and deductibles.

3. Exclusions

It contains what your policy does not cover such as events, properties, damages, and people.

4. Conditions

This part indicates the responsibilities of the policy holder (you) and the insurance company. It also includes the details on how to pay the premiums, the process to resolve disputes, and to file a claim.

5. Definitions

It is considered the "fine print" of the auto insurance contract. It explains your rights and provide definitions to the policy terms.

The car insurance contract is legally binding. Make sure you read and understand the terms and your obligations as a policyholder.

Additional Tips

• Check the Department of Insurance website of your state to gather information about your auto insurance company. The website also includes consumer complaint ratio. Look into it as well.  
• Know the financial strength rating of the auto insurance company.  
• Ask car dealerships and car repair shops for their recommendations based on their first-hand experience with the insurers.  
• When signing contract, never sign anything that has an empty space.  
• If you have a new car, you need to think carefully if you read on the contract the phrase "aftermarket parts may be used for auto repairs."
  

Auto insurance is an important agreement between you and your insurer. Make sure that it really provides the coverage and benefits that you need. Robert Nichols Insurance Group has its clients as their first priority with affordable rates and clever policies. To learn more about how we can help you please contact our agency at (561) 406-6153 or Click Here to request a free quote.

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