Automobile Insurance Declarations Page
There are too many things to think about when you start
comparing auto insurance rates. Automobile insurance has all the legal languages
that make the policy features and benefits difficult to comprehend. The
declarations page is a summary of the very important coverage. You will receive
a new declarations page at every renewal. These declaration pages should be kept
and reviewed over a three year period. You will learn a lot about how your
insurance policy is being rated. You will learn how much premium each coverage
generates in the overall rate. This is valuable information. Studying these
renewals will give you the knowledge that you need to target areas of your
policy that you may be able to adjust to lower your overall premium. The typical
declarations page is your shortcut to saving money on your automobile insurance.
Shopping online is also made much easier when you understand your declarations
page.
Declarations Page Schedule of Benefits
Liability Section - Compare the rates for the liability insurance
from one car to another. One car may be much higher than another. You need
to know why. Ask your insurance agent. Liability insurance protects you if
you accidentally injure somebody in an accident. It also protects you if you
damage someone’s vehicle or personal property.
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Physical Damage – Compare the collision and comprehensive rates from
one car to another. There may be an old vehicle with a young driver. You may
not want physical damage on this old vehicle because of the young driver.
The young driver will increase the rates because of age. A new car and a
young driver will make the rates even higher.
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First Party Benefits – These are benefits that apply to the insured
and other resident relatives. This usually involves medical, disability, and
miscellaneous life insurance coverage. Make sure that you are not over
insuring in any of these areas. You may have group medical insurance and
therefore not need a very high medical limit on your auto policy.
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Tort Liability – In some states, this is a huge part of your overall
premium. Some states provide a full tort verses a limited tort option. Tort
is your legal right to sue for pain and suffering. Limited tort is sometimes
20%to 30% less than the full tort premium. See your insurance professional
for tort laws applicable to your state.