Auto Insurance:
Auto Insurance is basically a contract between the policyholder and insurance company. The policy holder agrees for all the policies defined in the agreement and pays the premium to the company.
What Auto Insurance Company Provides:
Property:
This coverage pays for theft or any damage to the car.
Liability:
This coverage pays for the legal responsibility for others like bodily injuries or property damage.
Medical Coverage:
This coverage pays for the cost of treating injuries, rehabilitation and in worst cases pays for death expenses.
Auto Insurance Policy Documents:
Insurance Policy Document contains nuts and bolt means all the necessary information in your policy.
It includes Policy’s term and conditions for both you and your insurer company. It briefly explains rules exclusions, and claim procedures. These policies are easily ignored by policyholder So, it is essential for policy holder to read them completely.
Why Auto Insurance important?
Insurance Policy Document is a legal contract between insurer that is the insurance company and the insured that is policyholder. Legal agreement is not easy to understand but reading your entire policy agreement plan ensures all the information about the coverage you need and expect under the conditions.
Essential Parts of Insurance Policy:
Declarations Page:
The Declarations Page is also known as “Dec Page”. This page can be one page or more than one page.
Moreover, this page summarizes the key details of your policy written in your document.
These policies should include:
- The name of the coverage that is provided by the insurer (Insurance Company).
- This includes policy period how long the policy will last.
- Names of Insured (Policy Holder) and assets.
- Any Discounts provided by the Insurance Company.
- The amounts limit your coverages.
Definitions:
This section defines common words. Highlighting these words and their meaning. Common words may have limited definitions throughout the policy it can be special formatting like use of italic, boldface fonts and quotations to show they have special meanings. Hence, these words that are defined should be reviewed carefully for coverages and exclusions.
Insuring Agreement:
It is typically the main part of the policy. These agreements define what is included in exchange for your premium. In the light of this, company will legally defend the costs limits covered by car accident.
Insuring Agreement often provides broad overview of the coverage scope, then it is compulsory to note down in the exclusive and definition sections. Policy holder should be acknowledged what is covered and what is not So, it is important for Policy holder to go through these sections.
Exclusions and Limitations:
The most essential component of Car insurance is the Insuring Agreements and lists what your policy covers and what it does not cover. Exclusive sections should provide section for exceptions to exclusions in order to avoid all possible coverages and exclusions.
Conditions:
This section will provide all the details about the company commitment. This means if the policyholder doesn’t meet the conditions laid out here. so, insurer (Insurance Provider) can easily deny your claim.
Bottom Line:
These Document provides peace of mind to customer. Protection of the policy holder is insurance company’s responsibility . It is essential for policyholder to make sure about his contract. After this, he must be confident about the premium he covers and he is claimable to insurer.
