Three Questions to Ask About Your Car Insurance Policy
I’ve worked in the car insurance industry for 14 years and have taken thousands of calls to assist agents and customers. One complaint I hear often when an insured is in an accident is that they weren’t aware the driver was NOT listed or that they didn’t know they were missing a particular coverage, and the loss is not covered. This is not a post about how to shop for car insurance or how to pick the right insurance company. This is an important step that needs to be taken during the quoting process whether you’re buying new insurance or amending your current policy. Here is what you need to verify with the insurance company or your agent: drivers, vehicles, and coverages.
Drivers
Insurance is a government-regulated industry, and each state has its own insurance laws. It’s imperative that you do not assume that any driver is covered. Ask your agent or representative: Who is on my driver list? Ask this simple question every time you make a change or when you get a quote. This will make you aware of who is a covered driver in your policy. Do not let anyone drive your vehicle, only the listed drivers.
Vehicles
For most insurance companies across the country, if the vehicle is not listed, then the vehicle is not covered. After getting a quote, never assume the vehicle is added. What I often see is an insured calling to get a quote and not stating whether to add the vehicle or not. Often a person will believe that if a quote is gathered, then the vehicle is added. You must always confirm whether to add the vehicle or not. If you’re just looking to get a quote and make no changes, then you can state this before, during, or after the quote. This will confirm with the agent to not add the vehicle. The right question to ask is, “What are the scheduled vehicles on my policy?”
Coverages
Each state has a list of coverages that can be provided, but not every insurance company in the state may offer those coverages. It’s important to ask your agent, “What are all the coverages you offer and what do I have?” You may want uninsured motorist coverage, but your insurance company does not offer it. Another imperative question to ask is the definition of each coverage. You need to know how it covers you, your drivers, and your scheduled vehicles. Often, an insured buys liability, hits a vehicle, and the insured assumes their vehicle’s damages are covered with liability. In most cases, liability protects you by paying property damage and medical bills incurred by the party you hit. Know what is available and the definition of each coverage so you can make an informed decision for your needs. If you have a loss, you do not want to find out you’re missing the proper coverage to assist you in the situation.
Conclusion
Your declaration page lists all the drivers, vehicles, and coverages on your policy. Every insurance company can provide you with your declaration page. After starting your policy or amending it, ask for a copy to review. This is one of the most informative documents you can have. Always verify your drivers’ information, vehicle year, make, model, and vin; and that the coverage and its limits are entered correctly. If they’re not, call your agent or representative to update the information. Knowledge is power and it will give you more control and awareness of your policy. This general information is only to educate consumers about how to handle their policies effectively. If you have questions, reach out to your agency or insurance company.
