Financial Explanation of Auto Insurance Policy, Essay Example

The information requested for this research paper can be found in the Declarations Page of the automobile policy. “Essentially, the insurance declaration page is like a quick guide to the insurance policy, providing all of the basic information the policyholder needs to know. It includes the name and address of the insurance agency, with information about the issuing agent, and it includes the contact information for the insured individual. It also states what is insured, for how much, under which circumstances, and for how long.” [1](“What is an Insurance Declaration Page?”)  “When you receive a copy of your policy, it is very important you read the declaration page for accuracy.” [2](Washington, 2009).

The cost of a medical check-up for Bob Brown’s passenger will be covered under the Declarations Page and is optional to purchase. The normal coverage can range from $1,000-5, 0000.  Front and rear damage to the car is covered under the comprehensive part of the policy. The essential meaning of this is that there is coverage no matter what the circumstance are even if you are ‘in the wrong’ with regards to the accident. In the wrong means ‘at fault’. Mr. Brown was at fault in the accident because he collided into the other car at when this happens there is ‘automatic fault’ for failure to control your vehicle. The other vehicle that was hit from behind as a result of the initial collision will be covered under collision. There is normally a deductible associated with the collision coverage that the policy owner has to deduct. It can range from $0-1,000 depending on what the customer chooses. The higher the deductible, the cheaper the auto insurance rates. Uninsured property damage coverage is there for when property damage occurs and the other person is not insured. [3](Phillips, 2008). “The designated driver or policyholder, as well as family members listed in the policy, are covered (to the extent of the policy) in the event of bodily injury to a third party by your vehicle or when driving someone else’s vehicle with their permission.. If your vehicle (driven by you or someone else with your permission) is involved in causing damage to someone else’s property, this kind of insurance coverage will usually take care of the repair/replacement costs. This coverage covers not only damage caused to other vehicles, but also damage caused to buildings, poles, fences and other similar structures.” [4](Phillips, 2008).

References

[1] Phillips K. (2008) Auto Insurance Policies Retrieved September 13, 2009 from, http://www.kanetix.com/what-does-a-basic-auto-insurance-policy

[1] Phillips K. (2008) Auto Insurance Policies Retrieved September 13, 2009 from, http://www.kanetix.com/what-does-a-basic-auto-insurance-policy

[1] Washington C, (2009) What is an Auto Insurance Declaration Page? Retrieved September 13, 2009 from, http://www.associatedcontent.com/article/1585839/what_is_an_auto_insurance_declaration.html

[1] What is an Insurance Declaration Page (2009) What is an Insurance Declaration Page? Retrieved September 13, 2009 from, http://www.wisegeek.com/what-is-an-insurance-declaration-page.htm

[1] What is an Insurance Declaration Page (2009) What is an Insurance Declaration Page? Retrieved September 13, 2009 from, http://www.wisegeek.com/what-is-an-insurance-declaration-page.htm

[2] Washington C, (2009) What is an Auto Insurance Declaration Page? Retrieved September 13, 2009 from, http://www.associatedcontent.com/article/1585839/what_is_an_auto_insurance_declaration.html

[3] Phillips K. (2008) Auto Insurance Policies Retrieved September 13, 2009 from, http://www.kanetix.com/what-does-a-basic-auto-insurance-policy

[4] Phillips K. (2008) Auto Insurance Policies Retrieved September 13, 2009 from, http://www.kanetix.com/what-does-a-basic-auto-insurance-policy