Contents of Your Auto Insurance Policy

A Insurance Article Contributed by Deepak Cutting

Contents of Your Auto Insurance Policy

Your Auto Insurance Policy is a binding legal contract between the insurance company and yourself. You must therefore be familiar with the meaning and implications of such contract. An attempt is made below to familiarize you with some of the aspects of auto insurance.

The contents of an auto insurance policy fall into the following broad categories;

* Declarations.

* Insuring Agreement.

* Definitions

* Conditions,

* Exclusions,

* Endorsements, and,

* Deductibles.

Declarations in an Auto Insurance Policy

These are specific to each auto insurance policy. They include:

· The make of your vehicle, the model and the year of manufacture,

· The registration/identification number of the automobile,

· Person(s) covered by that auto insurance policy,

· The date from which the policy is in operation

· The type of policy & limits, and

· The premium to be paid.

Sometimes other information, such as the intended use of the auto (e.g. whether for business or for pleasure), the name of the lien holder should the auto be financed etc., are also recorded.

Auto Insurance Agreement

This portion spells out the various provisions and conditions included in that auto insurance policy, in return for the insurance premium. The extent of each type of cover and the individual or/and risk covered by the policy will be described here.

Definitions

The terminology used in the auto insurance document will be explained here, to eliminate the possibility of misunderstanding about the limit of obligations arising under the policy.

Exclusions in the Auto Insurance Policy

As the title suggests, this section identifies the type and extent of risks not covered by the auto insurance policy. It lists all those circumstances when the insurance company will not be liable to compensate for any damage caused.

Conditions of the Auto Insurance Policy

This section lays down the action to be taken by the beneficiary, in case a claim is to be made. Such information could include the making of a police report, the procedure to follow in lodgment of claim with the insurance company etc., and information on what will render the insurance policy canceled, is provided here.

Auto Insurance Endorsements

This lists the extra benefits available with that insurance policy. These could be:

* Auto towing insurance: As the title suggests, towing charges of the automobile are paid under this endorsement.

* Auto glass insurance: This endorsement pays for replacement of window glass in the vehicle.

* Daily rental insurance: This endorsement gives you the cost of renting a car while your automobile is being repaired, on account of a covered accident.

* Emergency roadside assistance endorsement: As the title suggests, it pays for repairs on the site of breakdown or accident. When combined with auto towing cover, it is called roadside emergency towing service.

Deductibles

This is that portion of each auto insurance claim, which is to be met by the insured person or the beneficiary. In a comprehensive or collision auto insurance policy, if the beneficiary agrees to meet a certain portion of each claim (which is called 'deductible'), the insurance premium applicable comes down. The higher the deductible, the lower the insurance premium.