The contract for a car insurance policy has several sections that could be difficult for you to understand. But here we are going to explain each one of them so that you can discover everything that the insurance you purchased for your car contains. It is essential to know it since it contains details of the obligations that you have as an insured and those that the insurance company must fulfill.
Statements of the auto insurance policy
Within this section you will find all the details on what is covered. The values of each asset are determined as well as the amounts of coverage and its extensions. The data mentioned are the following:
- Auto insurance owner information. All personal data that allow the insurance holder to be contacted. Here, data of people who are inside the owner’s house and who can be contacted if necessary should also be included.
- Data of the insured car . In this part you must clarify whether the use of the car is for work or pleasure. The model, license plates, year, make and more information about the vehicle must be provided.
Within the declarations section of the auto insurance policy, it is confirmed that the information is true and the data is current.
The auto insurance agreement
Both parties, the insured and the insurance company, will find their functions within this section. Here the insurance describes the services it offers and how it will intervene for you. The payment of the coverage is specified on a monthly or quarterly basis, in addition to the scope of the coverage.
You must confirm that everything that is here is what was agreed with the insurance agent. It is also important that you know your obligations with the insurer and what would happen once you do not comply with them.
The fine print of car insurance
Although most skip this part, it is the most important part of an auto insurance contract. In it are the exclusions, everything that the insurance does not cover, for example the damages that the car suffers after the passage of time or due to wear and tear.
Definitions are also found here and are those words that are not common and are accompanied by their meaning. This is important for legal purposes. Finally, there are the conditions, which are the responsibilities under which the owner and the insurer are governed.
Although the insurance contract can be tiring and too long to read, you should take your time and look closely. Consider that it is the backup that can help you and your car in the event of an incident.