October 21, 2010

How To Evaluate The Declarations Pages Of Auto Insurance Policies

In any auto insurance policy, the declarations page is also called the 'Dec' page. This page summarizes the personal auto insurance policy. All auto insurance policies have the 'Dec' page and there is a specific format involved in the structure of such pages. Proper evaluation of the 'Dec' page is critical to ensure that all information is correct.

Before starting the evaluation, it is important to know what the declarations page is comprised of. The 'Dec' page will mention the insurance company's name, policy number, vehicle identification number, deductibles, policy periods, address and name of the insured person. It also includes the description of vehicles included, extent of coverage offered for every vehicle, the premium amount for every vehicle, lien holder, loss payee, additional insured or additional interest, as well as endorsements like special conditions or changes to the insurance policy.

Ensure you review all the furnished information to check for accuracy. It is imperative that a copy of the declarations page be kept for future reference as it aids in procuring discounts by functioning as a proof of existing insurance. These declarations pages get issued by the insurance company on inception as well as renewal of an auto insurance policy. If a change is made on any policy, a revised declaration page is issued. The declaration page also shows the limit that can be extended in case of property damages. This refers to the maximum amount the insurance company would pay if there were damages to the automobile.

When evaluating a declaration page, it is important to note that coverage applicable is only as per the actual prevalent cash value. Hence, the coverage on the policy will eventually deprecate to the current market value and not at the price originally paid for. This clause is applicable for all auto insurance policies. Another point worth mentioning is that declarations pages never define specific responsibilities or roles of the respective parties concerned. These responsibilities will only be outlined in the main part of the auto insurance policy. If the declaration page does not include mention of coverage, it means the insurer does not offer this particular coverage for the vehicle. If a particular vehicle is found missing in the declarations page, it means it has not been insured.

Auto insurance policies tend to provide an assortment of coverage and the declarations page is the best way to know how much your vehicle is covered. Once an accident happens, it would be a tedious procedure to procure the exact document filed. Even if the insurance agent has promised certain aspects, if these are not included in the declarations pages, it means they are not provided.