What Specific Components Are In Your Car Insurance Policy?
Published: February 16, 2016 | Updated: June 15, 2021 | Posted by: Kyle Kam | Car Insurance
In a country like the Philippines where road accident scenarios are crazy, there’s no way to tell when an accident will strike – especially the ones where your car might be involved. Cars comprised the largest bulk of the type of vehicle that got involved on road accidents on the first half of 2015, which is 6,791 out of 15,292 (44.41%) according to the PNP Highway Patrol Group.
This makes buying a car insurance policy crucial for people in the country but not all those who’ve bought car insurance policies have done their due diligence on finding out as much as possible about their car insurance policies and insurance providers. Most of us Filipinos buy car insurance as a necessity and because it is mandated by the law.
This should not be the case and reading carefully through our car insurance policies should be a recurring practice for those availing it. If you know what details to look for and where to find it in your documents, your car insurance policy becomes a lot easier to understand. For those who are wondering what’s inside their insurance policy’s contract, here are 5 common sections you may see inside.
Table of Contents
This section is where you can see all your pertinent insurance information including your personal profile. It has the length of your policy, your coverage limits and deductibles, and personal information such as the following:
- Personal information like your name and car insurance provider
- Policy number and term
- Types of coverage you have elected
- Limit and cost for each coverage
- Liability coverage for injuries to persons and property
- Specified vehicles covered by the policy with detailed information on their parts
This section is considered as the “heart” of the insurance policy. This part states what your insurance company will do in exchange for the premium you’re paying, based on the coverage and coverage limits you selected. It outlines the coverage options and coverage limits that you purchased, such as liability, medical, collision and coverage. Often, insuring agreements outline a broad scope of coverage, which is then narrowed by exclusions and definitions.
This page breaks down the conditions that are not covered in your car insurance policy. These can be specific people, location, damages, events, and property. Knowing more of these exclusions might come in handy especially if you end up in a situation where you find out after a road accident that you have no coverage for that specific situation.
Here are some common exclusions found in some car insurance policies:
- Individual Drivers
- Bodily and property damage liability exclusions
- Physical damage coverage exclusions
- Nuclear exclusions clause
- Medical payments and uninsured motorist bodily injury
This section may be the “fine print,” but this page defines terms used in the policies and describes your rights. Think of it as the glossary of your insurance policy.
Some of the details you need to look out for when reading the fine print are if there are deadlines that you need to meet when filing paperwork. This might be directly correlated to your claiming process since most car insurance companies won’t process a claim without the proper documentation prior to filing of the claim. What you can do so you won’t miss this little detail is to highlight them at your policy and schedule taking care of any deadlines one week in advance just to be sure you hit the deadline.
Another useful tip is to find any confusing or unclear details in the fine print and talk to your car insurance agent until you get a full grasps of this. Misunderstandings on financial products may lead to unexpected charges if not resolved early on.
This section outlines your insurance company and your responsibilities to you when you’ll need to file a claim or process cancellation of the policy. These responsibilities include payment of premiums, policy cancellation, filing a claim and the proper procedure for resolving disputes.
Never leave your car insurance fine print unread
It should always be a practice to read your contract or policy before you make a purchase, especially if it’s for a car insurance. Don’t wait until something unfortunate happens to you. Knowing the exact details in your policy will help you be prepared once you sign it off and get your insurance coverage.
For more information about car insurance, here’s everything you need about car insurance in the Philippines.