Auto Coverage #101

We're going to go through the different types of policies one by one. We are starting with auto since, #1 we have to start somewhere and #2 the great State of Texas says you have to have an auto policy if you have a car.

Test time! Did you complete your mission last week? If so your ready, please take a moment and get you auto policy (not your insurance card) so we can start.

Let me give a quick word picture to explain coverage to you. If we look at a square drawn on a piece of paper we see an area within the boundries of the square and an area outside of it. The things inside the square are the items covered by your policy. The things outside the square are the items that are not covered by you policy. Then, we have the actual boundry itself that seperates the items inside the square from the items outisde the square. We will call this the "grey area" that is when the carrier does what's called a Coverage Investigation but for now we will focus on the items in our box.

Slowly, look the the top portion of the first pages on your auto policy until you see what's titled-Declarations Page. This is our starting point so let's hold our nose and dive into this very important page. This page gives you a simple and quick breakdown of the coverages you have paid for on your policy. Slowly look at the Declarations Page and you will find the name and address of the actual company that issued the policy. This page may also have the phone number(s) to call if you are in an accident. A good suggestion is to put this number in your cell phone so if you are in an accident you can call them immediately. It cuts down on the stress and hassle which you find yourself immersed in after an accident.

Now look for the policy number, it may be made up of numbers, letters or combination of both. Your policy number is a unique identity like a serial number. If you renew your policy and it does not lapse then you should maintain the same policy number. If this information can go into your cell, put it there so you can refer to it if you are in an accident. 

In Texas, auto policies are usually written in six month periods. These timeframes are usually called the "Coverage Period" of your policy. It shows the date the coverage on your policy started and the date it will end, if it is paid timely!!! You will notice the time of 12:01 AM which means at one minute after midnight on the date your policy ends so does your insurance coverage.  If you have an accident at 12:00:59 you are covered, have an accident at 12:01:00 and you are not!

There are names listed on your Declaration Page. Usually, the first name listed is the person the auto policy was actually issued to. However, while my wife is listed first on our policy, our policy lists both of us as "Named Insured". You may also see other names listed on your policy. These are usually named, Additional Drivers. These are people who are covered by the policy and allowed to use your vehicle.

Your mission this week, should you choose to accept it, grab your smart phone and educate it on your insurance information so you will have it when you need it most. Next week, we will walk through the different types of things you can pay to have covered on your auto policy finishing up our work with the Declaration Page.