Reading a Declarations Page Line by Line
The two-page summary at the front of your policy is the only part most people need to understand.
Your policy runs to perhaps eighty pages. The declarations page — the "dec page" — is the first two, and it is where everything specific to you lives. The rest is standardised contract language.
Named insureds
Who is covered as a policyholder. Anyone in the household who drives regularly should be listed. An unlisted household member driving your car is a common route to a denied claim.
Policy period
Start and end dates, with times. Coverage frequently begins at 12:01am on the start date, not midnight the night before.
The limits, and how to read them
Liability appears as three numbers, for example 100/300/100:
- $100,000 bodily injury per person
- $300,000 bodily injury per accident, across all injured parties
- $100,000 property damage per accident
The middle number is a cap on the total. Four injured people sharing $300,000 is a very different situation from one.
Per-vehicle coverages
Comprehensive and collision are listed per vehicle with their deductibles. It is common and often sensible for an older vehicle to carry liability only while a newer one carries everything.
The discount list
Every applied discount is itemised. Read it at every renewal. A discount that appeared last year and not this year is the most likely explanation for an unexplained increase.
Lienholder
If financed, your lender appears as loss payee. If you have paid the car off, remove them — otherwise claim cheques are issued jointly and take considerably longer to clear.
