Car insurance can seem like a complicated
business. This is even in the research phase when you're trying to find a good
insurer and policy. Then you come to your car insurance declarations page and
are bombarded with information.
The good news is that your car insurance
declarations page is not as complex as it sounds. It is the first page of your
policy and covers all the basic information about your car and the policy
itself. It is essentially a summary of the policy as a whole.
The declarations page includes your car
make, model, and VIN, your premium and deductibles, and the lienholder on a policy if you are leasing your
Here is what you need to know about the
various sections of your car insurance declarations page (or dec page).
Let’s start off with the basic information
your dec page will list. Essentially, it reads like a summary of the main
factors relevant to your insurance policy. It will start with the policy
number, which provides an easy way of communicating with the provider about
your policy. It may also include the details of previous policies you have
The page will continue to list information
about your policy itself. This will include your policy’s term (including the
start and end date) and the regularity of payments (usually each month).
The policy dec page will name relevant
parties. The owner of the car is the person insured, and as such is the main
named party. If there are members of your household that are excluded from
coverage for whatever reason, they will be listed.
The agent in charge of your policy from the
insurance company will be named, in addition to the name of the insurer. If you
are leasing your car, the lienholder will also be listed by name.
What vehicle details are included?
Everything relevant to the policy is named. This includes the make and model as
well as the year the car was manufactured. It will also include the Vehicle Identification Number (VIN) which is a
17-digit code given to every car.
The details of your premiums will also be
listed. The set price you will pay every month (or whatever term you have
accepted) in addition to your deductibles is included.
Your premium price will be based on a
number of factors, including the details of the car and demographic factors
like age and gender. Your driving history and where you live also impact your
Deductibles refer to the amount you must
pay yourself before your insurance kicks in. You can choose a higher deductible
if you want to lower the cost of your premiums. Some people go as high as
Car insurance can refer to a
number of different things. There is liability coverage that is required by
law in most states. This ensures that you can pay any claims made against you
for accidents you caused. Personal injury protection (PIP) is for healthcare
costs to you or your passengers in a collision you caused.
You can also get collision coverage, which
pays for damages to your car if you caused the collision. Comprehensive cover
provides coverage for theft and damage due to named perils (things like fire,
hail, and vandalism).
You may also have additional coverage like
underinsured motorist cover and gap insurance.
The extent of your coverage is included on
the dec page, including how much you are covered for.
If you have any additional policy terms
that you have included – known as riders – these may be included on your dec
page. They will be accompanied by unique codes that the insurer uses for
Riders are not always included on the dec
Whenever you get car insurance, you should
ask what discounts are available. You can get discounts for bundling your home
insurance and car insurance with the same company, insuring multiple vehicles,
safe driving, and many other factors. Any discounts may be listed on your dec
The above details all the basic information that is listed on the dec page for your new car. A car insurance declaration page is intended as a simple summary of your insurance coverage. By knowing exactly what to look for, you are in the best possible position to understand your policy in full.