Think You’re Covered for Car Accident Injuries? Check Your Insurance Declarations Page

Do you know what your car insurance policy covers? Before you answer that with an enthusiastic “of course I do,” you may want to take out your declarations page and double check. Like many people, you may think you are covered for losses that are not, in fact, covered, or you may have coverage, but the amount of coverage may be woefully insufficient. If it turns out that you do not have the coverage you thought you had, know that you are not alone. As attorney Paul Reed explains on the most recent episode of Lawyer Podcast, people frequently do not read their car insurance declaration page until after they have suffered a loss, only to realize that they are not covered for the loss.

How Do We Purchase Insurance in the 21st Century?

Do you know the name of your car insurance agent? Not the company, but the agent? If you are like the average American, the answer is likely “no.” In fact, unless you need to file a claim, you may pay your insurance premiums for years without ever speaking to an agent. This was not always the case though.

There was a time, not all that long ago, when purchasing car insurance involved a face-to-face meeting with an insurance agent. More recently, purchasing a car insurance policy at least required you to speak to an insurance agent over the telephone. In the 21st century, however, car insurance is commonly purchased with the click of a few buttons online. While there is an insurance agent involved somewhere along the way, the consumer may never speak to the agent during the purchase process.

Although it is indisputably easier to purchase car insurance in today’s electronic age, there is a trade-off for that convenience. Coverage needs are typically determined by an algorithm that uses data and input provided by the consumer. Unfortunately, this often leads to a consumer paying for coverage they do not need or failing to purchase coverage they do need. Worse still, most people do not read the “Declaration Page” sent to them when they purchase insurance or if they do read it, they do not fully understand what it means.

What Is a “Declaration Page?”

When you purchase automobile insurance, the insurance company will send you several policy documents after the purchase is completed. Among those documents is a “Declarations Page.” While it is wise to read all your insurance documents, it is crucial to at least read – and understand – the Declarations Page. The Declarations Page provides a summary of your insurance policy, typically including coverage types and limits, deductible amounts, and an overview of your premiums. As the policyholder, you have a duty to read, learn, and understand your coverage.

If a type or amount of coverage is not listed on the Declaration Page, then it is not covered. It doesn’t matter if you thought you chose a type or amount of coverage, or that you talked to someone on the phone about the coverage. All that matters is what is listed on the Declarations Page, which makes it even more imperative to read the page immediately to confirm that the coverage you actually have matches what you thought you purchased.

On the Lawyers Podcast, Paul provided an excellent example of why it is so important to read and understand your Declarations Page. A client called his insurance company after totaling his brand-new vehicle. He was at fault in the collision but was not overly concerned because he had collision coverage – at least he thought he had collision coverage. Unfortunately, collision coverage was not listed on his Declarations Page, meaning he is now making monthly payments on a $25,000 vehicle that has been turned into scrap metal.

Common Car Insurance Mistakes

The type and amount of automobile insurance coverage you should purchase will depend on numerous factors, including your age, driving history, family makeup, and value of vehicles covered. There are, however, some common mistakes people make when purchasing car insurance, such as:

Failing to carry minimum coverage: If you are at fault in an injury accident, and you do not have at least the state minimum coverage, your driving privileges can be suspended in addition to being held financially liable for injuries.

Only purchasing the minimum property damage: Florida only requires you to carry $10,000 in property damage insurance; however, a relatively new vehicle can be worth double that amount (or more), leaving you responsible for anything not covered by your insurance.

Misunderstanding “uninsured motorist” coverage: Uninsured motorist coverage is not only applicable when another driver does not have insurance coverage. It can also kick in if the other driver has insurance but does not have sufficient coverage to fully compensate you for your injuries.

Failing to add all household members: Insurance applications usually ask you to include all household members regardless of whether you plan to add them to the policy. People often fail to include everyone because they (correctly) assume that doing so will raise their premiums. Not doing so, however, can void the entire policy, leaving you with no coverage in an accident.

If you have questions or concerns about insurance coverage following a personal injury car accident, contact the experienced personal injury attorneys at Reed & Reed.