- Protecting your car and the investment you made in it.<\/li>
- Paying for expensive medical bills if you\u2019re involved in a crash.<\/li>
- Paying for any legal bills that stem from a collision, especially if you\u2019re sued.<\/li>
- Protecting against costly repairs if your vehicle is vandalized.<\/li><\/ul>\n\n\n\n
In this post, we\u2019ll guide you through the process of reading an insurance policy so you\u2019ll know what to look for, what to note, and what details you need. Our insight will help you learn how to read and understand your auto insurance policy.<\/p>\n\n\n\n
5 Sections of an Auto Insurance Policy<\/h2>\n\n\n\n
An auto insurance policy typically consists of<\/a> five sections. The first four identify who the insured driver or drivers are, outline the coverage terms, and note the exclusions as well as the conditions. The fifth section usually contains additional miscellaneous information that\u2019s pertinent to your policy.<\/p>\n\n\n\n
1. The Declaration Page<\/h3>\n\n\n\n
Typically the first section of the policy, the declaration page, names you as the insured driver along with any other drivers who are protected by your policy<\/a>. It also identifies the risks the policy covers, its limits, and how long the policy is valid.<\/p>\n\n\n\n
On the declaration page, you\u2019ll likely see a description of the vehicle the policy covers, including the make, model, and VIN, the premium you\u2019re expected to pay, and the deductible you have to pay before the insurance company pays its portion of a claim.<\/p>\n\n\n\n
2. The Insuring Agreement<\/h3>\n\n\n\n
The insuring agreement summarizes the major promises the insurance company offered you through the policy, stating what it covers. This includes paying for losses and medical costs if you\u2019re hurt in a crash, for example, or agreeing to defend in you a liability lawsuit resulting from a crash you caused.<\/p>\n\n\n\n
Insuring agreements typically list all of the risks or perils the insurance company will cover \u2014 if it\u2019s not listed, it\u2019s not covered. They also usually include information on your auto insurance coverage<\/a>, like noting whether your policy is comprehensive or whether it specifically provides protection against:<\/p>\n\n\n\n
- Collisions<\/a><\/li>
- Bodily injury and property damage<\/li>
- Uninsured<\/a> and underinsured driver coverage<\/li>
- Personal injury protection, or PIP<\/li><\/ul>\n\n\n\n
In Washington state, drivers are required to carry at least $10,000 of property damage liability<\/a> coverage. If you\u2019re a driver in Tacoma, Seattle, Spokane, or any other city or town in the Evergreen State, you\u2019ll likely find this detail in the insuring agreement.<\/p>\n\n\n\n
If you choose to include additional coverage options, like rental reimbursement or roadside assistance coverage, you\u2019ll likely also find this information here.<\/p>\n\n\n\n
3. The Exclusions<\/h3>\n\n\n\n
The exclusions section of your auto insurance policy notes all of the risks that your insurer will not cover, including losses and vehicle damage caused by, for example, daily wear and tear.<\/p>\n\n\n\n
4. The Conditions<\/h3>\n\n\n\n
![\"front](\"https:\/\/www.vernfonk.com\/blog\/wp-content\/uploads\/sites\/2\/2021\/05\/car-insurance-in-washington.jpg\")
<\/figure><\/div>\n\n\n\nProvisions that qualify or place limitations on the insurer\u2019s promise to provide a service or pay are typically found in the conditions section. This one is important because if these conditions aren\u2019t met, the insurer is not required to take action on your claim.<\/p>\n\n\n\n
Suppose a driver backs up, hits your parked car while you\u2019re grocery shopping, and drives off before you get back to the vehicle. In that case, you may receive some protection if you have uninsured motorist or property damage coverage on your policy, but that\u2019s not entirely guaranteed. If the conditions on your auto insurance policy state this type of crash is not covered, you\u2019ll have to pay to repair the damage yourself.<\/p>\n\n\n\n
5. Additional Information<\/h3>\n\n\n\n
The last section of an auto insurance policy usually includes miscellaneous information related to your policy. This may consist of definitions, citing specific terms used throughout the policy. It may also have endorsements and riders or written provisions that modify the policy\u2019s original provisions in some way \u2014 like adding another driver to your policy.<\/p>\n\n\n\n
Tips To Figure Out How To Read and Understand Your Auto Insurance Policy<\/h2>\n\n\n\n
It\u2019s easy to feel muddled by jargon and technical insurance lingo when you\u2019re reviewing your policy. Here are a few tips to help guide you through it.<\/p>\n\n\n\n
- If a section of the policy refers to information from another section, turn to that specific section and read it immediately. Say the insuring agreement briefly cites an exception to your collision coverage noted in the conditions section. Stop right there, turn to the conditions section, and read exactly what that exception is.<\/li>
- Pay close attention to specific words and phrases. An example would be the use of conjunctions or joiner words \u2013 specifically for<\/em>, and<\/em>, nor<\/em>, but<\/em>, or<\/em>, yet<\/em>, and so<\/em>. If a sentence states that your policy insures both you and<\/em> your daughter, for example, it means the two of you are covered when driving. If it instead says that the policy insures you and<\/em> your daughter when you\u2019re driving but<\/em> not under certain conditions, you\u2019ll want to make sure you understand what those conditions are.<\/li>
- Look up any insurance terms that may not be clear to you \u2014 that\u2019s typically why insurance policies include definitions in the last section. If you\u2019re stuck on something else that\u2019s in the policy, look it up online or reach out to your insurance agent and ask them to explain.<\/li>
- If you\u2019ve modified your auto insurance policy, specifically changing old information or including new provisions, make sure these modifications are accurate, correct, and meet your needs. In most states, insurers must send you a copy of your updated policy. Once you receive yours, read it immediately and notify your insurer if anything\u2019s off.<\/li><\/ul>\n\n\n\n
When you know how to read and understand your auto insurance policy, you\u2019ll have a good sense of who and what your policy covers for the length of time it\u2019s valid, which is usually a year. You\u2019ll also be able to determine what\u2019s essential and what\u2019s not, based on your needs and your driving habits. And remember, if you have any questions about your policy, you should consult with an expert<\/a> who can explain the terminology and the extent of the coverage.<\/p>\n\n\n\n
<\/div>\n\n\n\n
- Collisions<\/a><\/li>