Brokers Explain Why Is Important For Car Drivers To Read Their Car Insurance Contracts

Policyholders that own a vehicle need to take care of it, and besides all of the basic maintenance costs, there is the need to have the proper coverage. But whatever type of coverage car owners need, it is important to read the car insurance contract.

• Car insurance contracts have a section named “Declarations”, that can cover a single page or more pages. And while a car insurance policy constitutes a collection of preprinted contract forms, the declarations are written specifically for the policyholder and his specific policy contract. The declarations are meant to specify with precision the item or items that are insured, the period, and the amount of coverage. The policyholder will also find out which of the preprinted insurance contract forms applies to him. The top of the page contains identification data, like the name of the insured, where they live, where the mail gets sent, and where the insured car is garaged.
• The next section describes the vehicle or vehicles the policyholder wants to insure. This section includes a full description of the vehicle and the Vehicle Identification Number (VIN).

Policyholders should understand that the listed Named Insured has special rights under the policy. This person has full rights and is completely protected under all provisions of the car insurance policy. Someone who is simply a driver listed on the policy will not have the same benefits.