Typically, a higher deductible means a lower premium. Deductibles generally range from $250 up to $1,000. Collision: This coverage pays for any damage to your car resulting from a collision with another car or object, regardless of whether you are at fault.Liability insurance is broken down into three amounts: per person limit for bodily injury, per incident limit for bodily injury, and a property damage limit. This coverage is required in almost all states, but required liability coverage levels vary by state.
It will also protect you when driving someone else’s car with his or her permission.
Liability: This coverage pays medical bills, legal settlements, and repairs that are the result of injuries or damage that you or a designated driver cause to someone else’s person or property.Here is a rundown of the various coverages and recommended levels: “It’s very important to have enough liability insurance, because if you’re involved in a serious accident, you may be sued,” advises Loretta Worters, vice president of communications with the Insurance Information Institute. Without the proper coverage, you may be responsible for damages. “It’s imperative that this page be reviewed at each renewal to ensure everything is accurate and the basic details have not changed,” warns Paul Dreher with Lawley Insurance in Buffalo, New York.Ĭhoosing the proper coverages and levels is one of the most important parts of car insurance. Request that your carrier send you a new declarations page showing the changes.If you don’t receive a new one within a week after the change, call your insurance company: When you make changes to your policy, such as adding or removing a car or driver, you should be sent a new declarations page that shows the alterations to your policy. If you find that you have gaps in your insurance or are underinsured, it is time to start shopping for more coverage.When you make changes to your policy, like adding or removing a car or driver, the company will send you a new declaration page.You will find a definitions section and the details like who is insured, what is insured, and when it is insured, mentioned in your auto insurance policy.The declaration page tells what coverage you have on your policy and which you have declined.While it is termed a declaration “page,” it may be double-sided or multiple pages, so be sure to read it in its entirety. Surcharges: If you’ve received a speeding ticket, or made a recent claim there will be a surcharge on your premium.Discounts: Any discounts that have been applied to the policy.Policy period: The dates the policy is in effect.If a coverage is not listed in this section, you don’t have it. This should be broken out by vehicle if you have multiple vehicles on your policy. Schedule of coverages: A listing of the coverages, limits, deductibles and the premium for each coverage.Insured vehicles: The vehicles insured by this policy, including the VIN numbers.