Understanding Your Car Insurance Policy

Deciphering all of the parts of your car insurance policy can be difficult. Here, we've broken it down section by section so you can understand the information that is included in each part.

Declarations Page

The declarations page of your car insurance policy provides an overview of all details of your contract. Included on the declarations page are the following:

  • Name of the insurance company
  • Your name and address
  • The policy number
  • Effective and expiration dates of the policy - your policy covers you between these two dates
  • Description of all vehicles included on the policy, including year, make, and model
  • Coverage information - expect to see the different types of coverage you have selected listed here along with your deductible and the limits for each line of coverage
  • Premiums - this is how much you will pay each month for coverage. Premiums will be listed by vehicle as well as by coverage type.
  • Name of the lien holder - this is the person or institution that issued your car loan. If you paid for your vehicle without a loan, this area will be blank.
  • Name of the loss payee - this is the person or entity that is entitled to all or part of the insurance proceeds when a claim is paid out
  • Any special conditions or changes made to the policy

When you receive a copy of your policy, it's important to review all of the information on the declarations page for accuracy. Keep a copy of your declarations page in your files in case you find yourself with questions about your policy. Of course, you can always call your insurance broker at Scrivens and we'll be happy to answer any questions you many have!!

If you change or revise your policy at any time, a new declarations page will be issued to o you reflecting the changes. Make sure to review and keep this new declarations page as well.

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The Insuring Agreement

The remaining pages of your policy document are called the insuring agreement. The insuring agreement section of your auto insurance policy explains the risks you are covered for, the people covered under the policy, and the amount of time the policy covers you for. The purpose of the insurance agreement is to state the terms of the policy explicitly and clearly, leaving no room for misunderstandings.

Definitions

The insuring agreement always includes a definitions page. This is where the "fine print" of your policy is located. The definitions page defines vocabulary you will find in your policy to make it easier to understand. It also states your rights as the policy holder.

Conditions

Your responsibilities and the responsibilities of the company insuring you are outlined here. Conditions include payment requirements, the proper steps for filing a claim, and the process for resolving disagreements. If you have any questions about the conditions of your policy, make sure to contact us right away to prevent issues.

Exclusions

This section of the insuring agreement lists the events and circumstances which are not covered as part of your policy. The intent of the exclusions section is to make your policy as clear as possible and prevent any surprises in the event of a claim. A solid understanding of what your policy excludes is crucial in determining any additional coverage you may want to purchase.

Make sure to set aside some time each year to review your policy and ensure that the limits and coverage you have selected are right for you. Evaluate your needs based on your provincial regulations, the value of your car, the money you have in savings, and the amount of risk you feel comfortable taking.

Then, make sure to read the entire insuring agreement - especially the exclusions - to guarantee that you are covered in every situation that is necessary for your lifestyle. If you have questions about your car insurance policy, contact Scrivens today!

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