There are too many things to think about when you start comparing auto insurance rates. Automobile insurance has all the legal languages that make the policy features and benefits difficult to comprehend. The declarations page is a summary of the very important coverage. You will receive a new declarations page at every renewal. These declaration pages should be kept and reviewed over a three year period. You will learn a lot about how your insurance policy is being rated. You will learn how much premium each coverage generates in the overall rate. This is valuable information. Studying these renewals will give you the knowledge that you need to target areas of your policy that you may be able to adjust to lower your overall premium. The typical declarations page is your shortcut to saving money on your automobile insurance. Shopping online is also made much easier when you understand your declarations page.
Declarations Page Schedule of Benefits
Liability Section – Compare the rates for the liability insurance from one car to another. One car may be much higher than another. You need to know why. Ask your insurance agent. Liability insurance protects you if you accidentally injure somebody in an accident. It also protects you if you damage someone’s vehicle or personal property.
Physical Damage – Compare the collision and comprehensive rates from one car to another. There may be an old vehicle with a young driver. You may not want physical damage on this old vehicle because of the young driver. The young driver will increase the rates because of age. A new car and a young driver will make the rates even higher.
First Party Benefits – These are benefits that apply to the insured and other resident relatives. This usually involves medical, disability, and miscellaneous life insurance coverage. Make sure that you are not over insuring in any of these areas. You may have group medical insurance and therefore not need a very high medical limit on your auto policy.
Tort Liability – In some states, this is a huge part of your overall premium. Some states provide a full tort verses a limited tort option. Tort is your legal right to sue for pain and suffering. Limited tort is sometimes 20%to 30% less than the full tort premium. See your insurance professional for tort laws applicable to your state.
Miscellaneous Coverage – Car rental is usually an add-on to every auto policy but it is a valuable addition. This coverage provides a rental car to the insured in the event of an accident that damaged the insured’s vehicle. Towing is another add-on. Eliminate the towing coverage if you belong to the AAA or some other motor club.