Policy Declarations Page
The declarations page is the summary of your policy. It contains your name, policy number, coverage periods, vehicles covered, and premium amounts. This is the first page you should review to understand what you're paying for and what's covered. Keep this page easily accessible as you'll reference it frequently.
Coverage Types Explained
Liability coverage protects you if you're at fault in an accident. It covers bodily injury and property damage to others. Collision coverage pays for damage to your vehicle from an accident, regardless of fault. Comprehensive coverage protects against non-collision incidents like theft, vandalism, or weather damage. Uninsured/Underinsured motorist coverage protects you if hit by someone without adequate insurance.
Deductibles and Limits
Your deductible is the amount you pay out-of-pocket before insurance kicks in. Higher deductibles typically mean lower premiums, but you'll pay more if you file a claim. Policy limits are the maximum amounts your insurance will pay. It's crucial to ensure your limits are adequate to protect your assets. In South Carolina, minimum liability limits are required by law, but they may not be sufficient for serious accidents.
Exclusions and Limitations
Every policy has exclusions - situations not covered. Common exclusions include intentional damage, racing, using your vehicle for commercial purposes without proper coverage, and normal wear and tear. Read this section carefully to understand what's not covered. If you need coverage for excluded items, you may need additional policies or endorsements.
Understanding Premiums
Your premium is calculated based on various factors: your driving record, age, location, vehicle type, coverage amounts, and deductibles. Premiums can be paid monthly, quarterly, or annually. Some insurers offer discounts for safe driving, multiple policies, or safety features in your vehicle. Understanding how your premium is calculated can help you find ways to save.
Policy Renewal and Cancellation
Policies typically renew automatically unless you or your insurer cancels. You can cancel at any time, but you may be subject to fees. Insurers can cancel for non-payment, fraud, or significant changes in risk. Review renewal notices carefully as terms and premiums may change. Always compare your renewal offer with other options to ensure you're getting the best rate.