{"id":963,"date":"2015-01-29T16:04:25","date_gmt":"2015-01-29T20:04:25","guid":{"rendered":"https:\/\/project-011.com\/?page_id=963"},"modified":"2015-02-24T11:02:25","modified_gmt":"2015-02-24T15:02:25","slug":"understanding-your-auto-insurance-policy","status":"publish","type":"page","link":"https:\/\/project-011.com\/?page_id=963","title":{"rendered":"Understanding Your Auto Insurance Policy"},"content":{"rendered":"

\"Understanding<\/a>Understanding Your Auto Insurance Policy<\/h1>\n

7 Parts of the Typical\u00a0Auto Policy – DDICCEE<\/h2>\n

Understanding your auto insurance policy and how and why it is constructed in the way that it is will help you get the best auto insurance protection from the coverage you buy.\u00a0 An insurance policy is a legal agreement.\u00a0 Your auto insurance policy is a contract between you and the insurance company.\u00a0 You expect certain things from the coverage you buy and your insurance company expects things from you in return.\u00a0 We could spend hours going through the typical auto insurance policy but just understanding the major parts that exist in all auto insurance policies will help you understand your auto insurance.\u00a0 The acronym DDICCEE are the first initials of the major sections found in your auto insurance policy.\u00a0 I’ll explain them in detail in the following outline and they are not necessarily in the order you may find them in your policy (but it should be close).<\/p>\n

D – Declaration Page (sometimes called the Dec Page)<\/h3>\n

The declaration page is a part of your policy.\u00a0 If it were not for the declaration page, most policies issued would be the same for everyone.\u00a0 You see, the declaration page personalizes the coverage provided by your auto insurance for your specific requirements.\u00a0 That is why we could say that every policy is about the same except what is different for each of us.\u00a0 In understanding your auto insurance policy you should know the things you should expect on your declaration page:<\/p>\n

    \n
  • Policy number<\/li>\n
  • Coverage start and end dates<\/li>\n
  • The name of the first named insured (you)<\/li>\n
  • The address of the first named insured (your mailing address)<\/li>\n
  • Recitation of your selected coverage<\/li>\n
  • List of endorsements and policy provisions and versions that apply<\/li>\n
  • List of discounts that you have earned or qualify for.<\/li>\n
  • Lender or Lessor’s interests are shown giving the a security interest in your car or cars.<\/li>\n
  • Summary of the premium charged, showing any credits or discounts, and total premium for the policy.<\/li>\n<\/ul>\n

    D – Definitions – The important language and words in the policy are defined as they apply to this policy.<\/h3>\n

    Many words have meanings that are slightly different in a policy than they have in other circumstances and situations.\u00a0 Since understanding your auto insurance policy requires you know that insurance is a legal document, if there is a meaning for a word that the company is relying upon, they will show the word and the meaning they intend for the term in the definitions section of the policy.\u00a0 In many insurance policies, when a word that is specifically defined is used in the policy language, that word appears in bold text so you know that special meaning applies to that word.<\/p>\n

    I – Insuring Agreement – These are the Mutual Promises<\/h3>\n

    “In return for your timely payment of premium and your compliance with all the provisions of this policy, we agree to provide the coverage you have purchased.”\u00a0 OK, not quite what a policy says but it is the agreement in principle.\u00a0 But here is what actually constitutes the “Agreement” in the ISO PP 00 01 01 05<\/em> version of the personal auto policy.\u00a0 There may be different “insuring agreements” for different parts of your coverage.<\/p>\n

    “In return for payment of the premium and subject to all the terms of this policy, we agree with you as follows:”\u00a0<\/strong> <\/span>Pretty straightforward.\u00a0 Since the company is making the important promises you are paying for most of what follows these words describes the coverage and terms you have bought on your auto insurance policy.<\/p>\n

    C – Coverage – These are indicated on the declaration page.\u00a0 The coverage you have purchased.\u00a0 This includes the exact language\u00a0used to\u00a0provide the coverage you have purchased.<\/h3>\n

    Understanding Your Auto Insurance Policy starts with understanding the coverage you have chosen.\u00a0 These choices are specified on your declaration page.\u00a0 While the coverage may be difference from auto to auto on a multi-auto policy, if it isn’t listed you probably don’t have the coverage.\u00a0 You may have BI-PD Liability, Medical, UM, UIM, UMPD on a car of little value, and on another have the addition of Collision, Comprehensive, Towing, and Transportation Expense.\u00a0 If it isn’t showing a premium for the coverage you probably don’t have the coverage.\u00a0 That is a general statement as some coverage might be free on some company insurance plans but make sure you are getting what you want.\u00a0 Anyway, the insurance company goes to great lengths to explain what they mean by each of the coverage parts you select and this is where the language appears to include the protection you have chosen.<\/p>\n

    C -Conditions – These might be considered the Rules.\u00a0 Includes your “duties” as part of the coverage.<\/h3>\n

    Conditions can be considered the mutual expectation of performance under the policy but they mostly lay out how you and the insurance company might enforce the policy upon the other when there is disagreement.\u00a0 Common areas inside the Condition’s section of the policy include Abandonment, Appraisal, Arbitration, Subrogation, other insurance, your obligations after a loss to protect the property from further loss, Other insurance, when a lawsuit against the company can be justified, What to do when losses happen, and your obligations to the insurance company after a loss.\u00a0 These are but a few of the conditions, or rules, you’ll find in the auto insurance policy.<\/p>\n

    E – Exclusions – What type of property we cannot cover, or what kind of perils (causes of loss)\u00a0we are not including.\u00a0 There may also be limitations.<\/h3>\n

    Examples of exclusions include an exclusion for “wear and tear”, intentional acts, Nuclear damages, and Earth movement.\u00a0 On your auto insurance policy a carrier may permit you to buy back an exclusion for an additional premium.\u00a0 That same holds true to limitations to coverage.<\/p>\n

    E – Endorsements – Endorsements May add or Subtract or Amend the policy and coverage it provides.\u00a0 Sometimes referred to as a “Rider”.<\/h3>\n

    An Endorsement is ubiquitous in the auto insurance policy.\u00a0 The large insurance companies may use a standard policy form in many states and then use an\u00a0“amendatory endorsements” to bring it into compliance with Ohio law, or the law of a state where you reside.\u00a0 Amending policies also occurs under a provision in law called “liberalization” but amendatory endorsements usually make something fit laws that apply in a state.\u00a0 One type of endorsement is when you add a special form of\u00a0property to a policy provision that\u00a0adds coverage where none existed in\u00a0a stock\u00a0policy.\u00a0 Let’s say that you buy a new car on an 84 month repayment term.\u00a0 We add the Gap coverage to the policy.\u00a0 No coverage exists for Gap losses unless the endorsement is added.\u00a0 This endorsement adds coverage.\u00a0 Let’s say that Ohio changes their laws during the year and the company issues your renewal with an Amendatory endorsement changing the language so that the policy you were provided complies with the law of Ohio.\u00a0 This is an amendatory endorsement.\u00a0 During the year, your son develops into a bad driver that will require cancellation of your policy unless he is excluded from coverage.\u00a0 An endorsement is issued to exclude your son as a driver and this endorsement removes coverage from the policy for your son as a driver.\u00a0 Endorsements may add or subtract or amend coverage and that is why it is important for you to understand your auto insurance policy.<\/p>\n

    S – Summary – This is not part of your policy but concludes this document.<\/h3>\n

    Nearly all policies are constructed with these essential parts:\u00a0 Declaration page, Definitions, Insuring Agreements, Coverage, Conditions, Exclusions, and Endorsements.\u00a0 The fact that there are thousands of insurance companies doesn’t change the basic statement that the latter items in some form, or in some organization, appear in almost every policy.\u00a0 Understanding Your Auto Insurance Policy is made easier when you know these essential parts.\u00a0 Expect to see them and recognize them as important parts of your coverage.\u00a0 Even if your company may label the essential parts with slightly different language you will find these ingredients in the recipe used to make your auto insurance coverage.<\/p>\n

    Terry McCarthy has 37 years of insurance experience and is qualified to help you get the best coverage at the least cost.\u00a0 Contact him at (513) 779-7920 Monday – Friday from 9 – 5 most days for personal attention and expert advice on insurance for auto, home, business, life, retirement, and other needs.\u00a0 Other hours are available by appointment.<\/p>\n

    <\/h1>\n","protected":false},"excerpt":{"rendered":"

    Understanding Your Auto Insurance Policy 7 Parts of the Typical\u00a0Auto Policy – DDICCEE Understanding your auto insurance policy and how and why it is constructed in the way that it is will help you get the best auto insurance protection from the coverage you buy.\u00a0 An insurance policy is a legal agreement.\u00a0 Your auto insurance […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":14,"menu_order":0,"comment_status":"open","ping_status":"open","template":"tpl-auto-insurance.php","meta":{"footnotes":""},"class_list":["post-963","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/project-011.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=963"}],"version-history":[{"count":6,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/963\/revisions"}],"predecessor-version":[{"id":1380,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/963\/revisions\/1380"}],"up":[{"embeddable":true,"href":"https:\/\/project-011.com\/index.php?rest_route=\/wp\/v2\/pages\/14"}],"wp:attachment":[{"href":"https:\/\/project-011.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}