There are five major components to a typical auto insurance contract. These components might have slightly different names based on your state and/or insurance company. Regardless of the exact wording they will all have the same compnents covered. Let us give you a little additional information about your auto insurance policy components.
Declarations
The declarations section of the insurance policy shows who is insured, what vehicles are covered, the timeframe that the insurance coverage is in force and how much coverage applies. All of this information relates directly to you. This lists your personal information such as your name and address, names of each of the insured drivers covered by the policy, the make and model of your vehicle, vehicle identification numbers, policy number and policy duration. Basic information about the type of coverage you purchased and your policy limits and deductibles is also listed. You need to make sure that all of this information is accurate, and if there is anything incorrect in this section report the changes to your insurance company. If there is inaccurate information that you provided to your insurer your claim could be denied.
Coverage parts and insuring agreement
This section outlines the coverage options and coverage limits that you purchased, such as liability, medical, collision and comprehensive, and any other optional coverages. This section is the list of what your insurance company promises to provide in return for your payment, based on the coverages and coverage limits you selected.
Exclusions
This section of the insurance policy, which list property, perils, person, or situations which are not covered under this auto insurance policy. Combined with the coverage parts section above, and by listing out the details of what is not covered, you now know exactly what will be covered when you make a claim. You need to understand what these exclusions are. If any of these exclusions are important in your situation might want to purchase additional insurance to cover those areas.
Conditions
This component of your auto insurance policy which sets forth the rights and duties and legal responsibilities of the insured and the insurance company. This section lists usually contains the premium payment obligations, steps to filing a insurance claim, and procedures for resolving any disagreements.
Definitions
This section defines terms and outlines the rights of the policyholder and the insurance company. This section is often referred to as the "fine print". If you do not understand any terms in this section, ask your insurance agent to explain them. You need to know exactly what coverage that you do or do not have.
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