Once you start to understand the declarations page, car insurance can be made easier. Every time you renew your car insurance, a new declarations page is sent to you. You can find out how your policy is rated from the information on the renewal declarations page. The policy itself is very hard to understand because it is written in legal terms. This page is a summary of your protection and is broken up into sections.
Section I: Responsibility This section lists the limits of liability for injuries to people and damage to property. This part of your coverage will protect you if you are found to be at fault in a car accident. Most car insurance policies have split limits. Most split limits are 100/300/50. The first two limits are for injuries to the body. The 100,000 is the limit for bodily injury liability per person, and the 300,000 is the limit for bodily injury liability per accident. The third limit is a limit of 50,000 for damage to property caused by the driver.
Tort Option - A tort option is available in some states. Full tort means that you can sue for more than just pain and suffering. This right is limited by limited tort, which also lowers your overall premium.
Section II: Damage to the body - This part is all about the damage to the cars themselves. It has two main things going for it. Collision insurance covers damage to your vehicle in an automobile accident. Comprehensive insurance protects your car against theft, hitting an animal, breaking a window, catching fire, and a number of other things.
Section III: Benefits for the First Party: This section is for the first party insured and all living relatives. This can be different in each state. First party benefits are things like medical costs, loss of income, and life insurance.
Cost savings: If you're at fault in a car accident, you're most likely to lose money, so it's not a good idea to have low liability limits. Costs can be cut by making the deductibles for collision and comprehensive insurance higher. If you want to get a discount for having more than one policy with the same company, make sure your home policy is with the same company. You can save up to 20% if you choose limited tort. Some states are the only ones where you can get the tort discount.
