All drivers should know they are supposed to have a car insurance policy (or other form of financial responsibility), but many who are new to driving or are about to start driving may not be very familiar with what a policy entails. Perhaps it would help new drivers feel more at ease to purchase a policy if they knew what to expect before the actual purchase. No matter what a person is going through, it is easier to deal with when they know what’s ahead instead of trying to do something for the first time in the dark.
The Declarations Page
The declarations page is the part of the car insurance policy that contains all of the information about the policy purchased, including who purchased it, what vehicles are listed, etc. This page is an easy reference page for the policyholder and they can refer to it to refresh their memory of what they’ve purchased or when they’ve been in an accident and need to know what’s covered.
Names – the declarations page contains the names of the policyholder, the members, and the name of the insurance company. Also listed with the names are the person’s contact information, such as residential address and phone number. These names are listed so there is no confusion about who is and isn’t on the policy.
Policy Number – the policy number is listed on the declarations page. This number is what each customer of that insurer is referred as first, since there are some people with duplicate names. To easily file a policyholder’s information and refer to them quickly, the insurer assigns a number (which can be mixed with letters). Policyholders will need this number whenever they contact the insurer by phone or on the website.
Policy Period and Term – these listed dates are the length of the policy and the dates the policy is effective. Most insurers will automatically renew the policy when the term ends, but not always. Any accident related damages that occur outside of these starting to finishing dates will not be covered under the policy.
Vehicle Description – also on the declarations page is a description of each vehicle that is insured on the policy. The make, model, and year are in this section of the page, as well as the VIN number and age of the car is usually also present in this section. The garaged address is also listed in this section or underneath. It shows the address of where the vehicle is stored when not in use. There is usually a discount given for vehicles that are in a stored and locked facility, and the address of this location is needed. It does not have to be the same as the residential address.
Coverage and Premium – In this section is listed the coverage options that have been purchased, the amounts purchased, the deductible, and the cost of the premium. This part is what is most confusing to policyholders. First, know what liabilities are and then the names of the optional coverage that is offered by the insurer. Once a driver knows these definitions they will be able to read through this section easier and with better understanding.
Endorsements – endorsements listed on a declarations page are the other options that have been purchased and added to the policy. Not everyone adds endorsements, but they should be looked at to get an idea of what is offered by the insurer.
Signature – this is where the policyholder signs to acknowledge the agreement of purchase between the insurer and him or herself. Without this signature and date, the policy is not valid. When purchasing a policy online, the insured often uses an electronic signature by typing in their initials, full name, clicking a box, or other way deemed appropriate by the insurer.
In addition to the declarations page, insurers will usually include explanations or terms of what each coverage purchased are that have been purchased. Each insurer’s terms may vary from one another.
Buy A Policy
Now that a driver will know what to expect within a policy after they purchase one, they can start looking for a policy to purchase. The best way to start is by using our quote comparison tool, which will get any driver a list of quotes from local insurance companies to provide coverage for their vehicle. Enter the local zip code in the appropriate box on our website and answer the questions that follow to get your quotes. The questions will regard the driver, the vehicle, and the coverage wanted. You’ve already gone through what is on the declarations page and the information wanted during the questionnaire is very similar. If you have that information readily available before you start it will make answering the questions (and the whole process) go much quicker. When the questions have been answered, the insurers will take that information and decide what it will cost to provide you with their coverage. Look through the list and see which company will offer the lowest price. You can conduct a further research of the companies or you can purchase the policy right there online with a credit card. There are no fees to use our comparison tool or any obligation to buy.
Purchasing a policy online also helps minimize paper clutter, which is a bonus for anyone who is working on “green” methods. Everything is read through online and signed electronically. There is always an option to have the policy sent via mail or fax, but it becomes one more thing to clutter the home office or have to file away. You can almost always download the policy and save it to your computer for easy reference. The proof of insurance card can be printed from the home computer and stored in the vehicle immediately. The less paper going into your home means less paper going out as waste.
Having a car insurance policy is required by most states, and understanding how they work and what they look like may entice more drivers to abide by the law and purchase a policy. Not every driver feels they can afford a great policy, so start with our quote comparison tool to see what a basic limited liability policy would cost. Then look into what discounts you could be eligible to receive to lower the cost further. For more ideas on how to save on car insurance, read through our other articles. We aim to help drivers find the lowest price for their coverage.
