Automobile Insurance: The Policy

1. Automobile Insurance: The Policy

2. Automobile Insurance: The Policy A common mistake when shopping for automobile insurance is looking only at the price between two policies Policies differ from policy to policy and company to company 5 parts to an insurance policy: Declarations Coverages Exclusions Conditions Definitions

3. Declarations Lists important personal policy information and is unique to each individual insured Contains personal information: name address vehicle make and model vehicle identification number types of coverages policy limits deductible amounts

4. Coverage Parts/Insuring Agreement Outlines the coverage options and coverage limits purchased In short, what your insurance company promises to provide in return for your payment, based on the coverages and coverage limits selected

5. Exclusions Details what is not covered by the policy Examples: Intentional damage to your own vehicle Damages caused while vehicle is used as a delivery vehicle

6. Conditions Define the insured’s and the insurer’s duties that, under the terms of the policy, must be fulfilled Includes: premium payment obligations steps to filing a claim procedures for resolving a claim

7. Definitions Explains specific terms used throughout the policy Examples: “You” or “Your” refers to the “Named Insured” “We” or “Us” or “Our” refers to the insurance company “Family Member” refers to a resident of your household

8. Automobile Insurance: Accidents Chances are even if you are never in an accident you will witness one What should you do if you are involved in an accident?

9. Steps to take after an accident • Help anyone who is injured • You have an ethical and legal responsibility • Notify the police • Prevent further accidents • Protect the accident scene • Record information • Exchange information with the parties involved • Take note of time, location, weather, and road conditions

10. Filing a Claim It is important that the accident is reported promptly to the insurance agent or company The policy will guide the insured on the correct steps to take to report the claim The company will guide the insured through the process

11. Filing a Claim • When you are liable for an accident • The insurance company covers the loss up to the policy limits • Your insurer represents you if you are sued • Your insurer has the right to settle any legal action without your permission • Your premium may rise • Insurer has the right to cancel your policy • If the losses exceed the policy provisions, the insured is responsible to cover the excess