Understanding Your Insurance Declaration Page

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Guide to Understanding Your Insurance Declaration Page

Your insurance declaration page is a critical part of your auto insurance policy. Typically sent twice a year or whenever your insurance policy gets renewed, the declaration page outlines the coverage that you have in case of an accident. Failing to have the appropriate automobile insurance coverage that you need — and that the state of Michigan requires — can have serious consequences if you or someone you love is hurt in a wreck.

Have you been injured? It’s always a good idea to have an experienced car accident attorney review your policy before filing a claim for compensation. Call or contact Christensen Law for a free consultation with one of our acclaimed attorneys today.

What is a Declaration Page?

What is a Declaration Page?The declaration page lets you know precisely what auto coverage you have. It also outlines your liability limits so you’ll know how much you’re on the hook for in the event of an accident.

Chances are that your declaration page won’t change much over time unless you’re adding or removing vehicles, or changing the coverage on one or more of your vehicles. However, taking a few moments to review the page thoroughly is well worth your time.

Insurance companies keep the declaration page in a simple format to encourage you to look it over. It’s broken down into sections because it’s in their best interest — and yours — to agree on the specifics of what is covered.

As your circumstances change, your automobile insurance may need to change, too. For instance, you may have a new driver in the family or perhaps you traded in your old car for a new one. Ideally, your declaration page serves as a reminder to be sure you’ve updated your policy.

What is Liability Insurance and What Does It Cover?

You purchase auto insurance to protect you in the event an accident occurs. Liability insurance covers expenses you incur due to an accident.

Liability insurance is relatively inexpensive and is worth buying. Besides, it’s required by law. In Michigan, motorists are required to carry personal injury protection (PIP), bodily injury/property damage coverage, and property protection insurance.

Bodily injury coverage is essential. This is how much your insurance company can pay to another person if you cause an accident that injures them.

In Michigan, the minimum you must carry in bodily injury coverage is $250,000, an amount that often doesn’t cover the true costs of many car accidents. In some instances, it is possible to purchase only $50,000 in coverage, but this is highly risky as this amount is rarely enough to cover the costs of injuries from a car accident. If you don’t have enough insurance, you put your own assets and even future earnings at risk. For this reason, it’s wise to buy at least the $250,000 miminum required by law. That increases the chances that the money to pay for accident-related costs will come from your insurance policy, not your wallet.

What is Uninsured and Underinsured Motorist Coverage?

If you are struck by a driver without insurance or who doesn’t carry enough insurance to cover your losses, your PIP benefits from your own auto insurance policy will pay your accident-related costs up to the policy limits. However, it is possible to purchase uninsured motorist coverage (UM) or underinsured motorist coverage (UIM) to provide an added layer of protection if you are injured in a wreck.

Michigan doesn’t require UM/UIM, but Christensen Law highly recommends that you purchase the maximum amount you can afford. Otherwise, depending on your PIP limits, you may not have enough money to cover your losses if you are catastrophically injured in a car accident.

How Can an Attorney Help Me?

There’s much more to learn about automobile insurance and how to use it to your best advantage. Like many things in life, it’s best to understand it before you need to use it.

Should you find yourself involved in a Michigan car accident, Christensen Law is standing by 24/7. We will spare no effort in fighting for the payout you need and deserve. With record-setting settlements and verdicts across Michigan, our car accident lawyers are known for delivering justice.

Call or contact us now to get started.