Essential Tips and Auto Insurance Policy Basics
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Finding the best auto insurance company that will provide the amount of coverage that you need at the price you can afford is just the first step. This can be easily done online with an electronic application and most companies give you the opportunity to print the proof of insurance immediately.
With the technology of today, you now have the ability to search, find and purchase auto insurance online with just a few clicks. When you have finished the process of obtaining a paperless purchase online, you will be sent the full paper policy to review. The policy basically tells the vital information and details of your new coverage.
Understanding an auto insurance policy is not as difficult as some people may think. Basically, it gives all of the pertinent information that relates to the insurance coverage and what it all means. It can be a bit confusing at first, but once you can comprehend it all, it really isn’t as hard as you think. An explanation is given below to give you additional information for reviewing your auto insurance policy.
Things on an Auto Insurance Policy Declaration Page
While there are many kinds of coverage and auto insurance options, every declaration page will look different. As soon as you receive your auto insurance declarations page, which should be issued upon inception, it will be a good idea to check over all of the listed values and information. If you have any questions concerning the policy, the insurance company would be able to help answer them for you.
Sometimes called a “Dec” page, the auto insurance policy declaration page is simply an itemized description that tells about your vehicles and the coverage that you have purchased. This page will list your name and address, the name of your insurer, policy number and effective dates of the policy. Also shown would be a description and coverage of included vehicles, premium for the coverage, loss payee or lien holder and any special conditions on the coverage which would be listed as an endorsement. The loss payee will be anyone that has a lien on your vehicle; such as if you have an auto loan on it and in that case the financial institution will have to be listed.
One thing that is often confused concerning the declaration page of your insurance policy is that when liability medical coverage is listed it is wrongly interpreted as covering their medical costs. This gives a false security because in actuality, unless there is medical injury protection listed, the coverage does not include any type of coverage for your injuries or damages. It only pertains to injuries to others that may have been involved in an automobile mishap. This is a very important to check on your policy and you should ask about it if it is not there.
Adding Vehicles and Drivers to Your Auto Insurance Policy
It is usually advantageous to add a driver to an auto insurance policy because of additional discounts that you will receive and the ability to drive any of the other vehicles in the home. Multiple drivers and vehicles can easily be included on one policy when you purchase online or in person. Each insurer will have its own set of rules, so it will be best to check with your carrier on the procedures. The biggest obstacle that you might have to face is that all of the vehicles will be on one policy with one set due date for the premium to be paid. It will require every driver to pay their portion of the payment at the same time as others and paydays may be different for each person. This may create an issue that could put you at risk of losing your auto insurance coverage, if the monthly premium is not paid on time.
Some parents may wonder if they should add their children to their existing auto insurance policy and there is not a definitive answer to that question. Each individual and circumstances will vary, so you will need to assess the options by possibly getting an online auto insurance quote for the separate policy for your child. Then check into the price increase that adding them to your current policy will create and then you can compare the two choices in order to decide.
There are a couple of things to keep in mind, however, when adding a child to your existing auto insurance policy or obtaining a separate policy of their own. If you choose to add the new driver to your current insurance policy, the rates for all of the insured vehicles may increase and it may drive the premium to an unaffordable level. The child will be insured while driving all of the vehicles in the household, so if they plan on driving your car, this is the way to go. If your current premium goes up drastically, get a quote from another carrier and compare the difference before making a decision. On the other hand, if you decide to go ahead and purchase a separate insurance policy for your child, he will not be insured while driving any of the other vehicles that are on your current policy.
Cancelling an Auto Insurance Policy
Many drivers think that they are obligated to hold their auto insurance policy throughout the coverage period, but it simply isn’t true. Through your search and comparison of other companies, if you happen to find another auto insurance carrier that you have decided to purchase, you will need to cancel your current policy. There could be cancellation fees involved, but they are normally billed later and are of a nominal amount. Insurance companies are not permitted to charge money for any unearned premiums, so when you cancel the coverage you will not owe for any upcoming periods. The fact of the matter is that most insurance premiums are charged for future months in which you will no longer have their coverage, so in that case, the insurance company will refund the prepaid money to you. Every insurer will have their own rules for cancellations, so it might be best to simply give them a call to find out about their guidelines for cancelling.