Car insurance policies contain important information about who and what is covered after an accident. However, terms such as bodily injury liability, uninsured motorist coverage, and deductibles can make a policy difficult to read and understand.
One of the best places to start is the declarations page. It gives you a snapshot of many important parts of your coverage. Keep reading to learn more about the standard parts of a car insurance policy and how to better understand your own policy’s coverage.
What Is a Car Insurance Declarations Page?
The declarations page is usually found near the beginning of your insurance documents. It summarizes key details about your policy, including the vehicles and drivers listed, coverage limits, deductibles, and optional coverage you purchased.
Check that the correct vehicle is listed. Auto insurance coverage is generally tied to insured vehicles, although policies can also cover certain drivers and situations based on their terms. If your household has multiple cars, they may be listed under one policy or covered through separate policies.
The declarations page may also identify additional drivers. People who live in your household and regularly drive your vehicle should generally be disclosed to the insurer according to its requirements.
What Is Liability Coverage?
Liability coverage helps pay for injuries or property damage you cause to other people when you are responsible for a car accident.
Georgia liability limits are often written as 25/50/25, which means:
- $25,000 bodily injury liability per person: The maximum amount available for injuries to one person in a single accident.
- $50,000 bodily injury liability per accident: The maximum amount available for injuries to everyone hurt in a single accident.
- $25,000 property damage liability per accident: The maximum amount available for covered damage to other people’s property in a single accident.
Bodily injury liability coverage can apply to covered claims made by injured drivers, passengers, pedestrians, or others. Property damage liability most often applies to damage to another person’s vehicle, although it can also cover other property.
These liability coverages protect you against covered claims from other people when you are responsible for a crash. They do not pay to repair your own vehicle. The amount of coverage you purchased in each category should appear on your declarations page.
What Is Uninsured or Underinsured Motorist Coverage?
Uninsured motorist coverage protects you when an at-fault driver does not have insurance. Underinsured motorist coverage can apply when the other driver has insurance, but not enough to fully cover the losses.
This coverage can be especially important after a serious accident. Medical bills and other losses can quickly exceed a driver’s liability limits.
Depending on your policy, uninsured motorist property damage coverage may also help pay for damage to your vehicle when an uninsured or underinsured driver causes the crash. Someone who owns an expensive vehicle may want to pay close attention to the amount of property damage protection their policy provides.
What Do Limits and Deductibles Mean?
A limit is the most an insurer will pay for a particular covered claim, subject to the terms of the policy. A deductible is the amount you are responsible for paying toward a covered loss before your insurance pays the remaining covered amount.
For example, if you have a $500 collision deductible and a covered repair costs $5,000, you would generally be responsible for the first $500.
What Other Coverage Types Might Be Included on Your Policy?
There are a few other common types of coverage that you may have included on your policy.
Comprehensive coverage, sometimes called “other than collision” coverage, helps pay for certain types of damage that do not result from a vehicle collision. Examples may include hail damage or damage caused by an animal.
Collision coverage helps pay for damage to your own vehicle after it collides with another vehicle or object. Collision coverage is different from property damage liability. Liability coverage pays for damage you cause to someone else’s property, while collision coverage protects your own vehicle.
Rental reimbursement is optional coverage that can help pay for a rental vehicle while your covered car is being repaired after a qualifying loss. Check your declarations page for the specific limits. A policy might provide a certain amount per day and place a separate cap on the total amount available.
Contact an Atlanta Car Accident Lawyer at Rafi Law Firm to Review Your Options
Insurance policies are contracts, and the declarations page is only a summary. After a serious collision, an attorney who regularly reviews policies from different insurers can examine the full policy, identify available coverage, and determine whether there may be more than one source of compensation.
For more information, contact an experienced Atlanta car accident lawyer at Rafi Law Firm to schedule a free consultation today.
We proudly serve clients throughout Fulton County and the greater Atlanta metro area in Georgia.
Rafi Law Firm – Atlanta
1776 Peachtree St NW UNIT 423, Atlanta, GA 30309
(404) 800-9933
