In short, the Declarations Page spells out what is being insured and for whom, how much it's being insured for, and at what price. When there is a change to your policy, such as an increase of coverage limits or addition of another automobile, you will receive a new Declarations Page showing the new information. You also will recieve a new Declarations Page when you renew your policy. There are two things you immediately should do with your new Declarations Page:

First, compare it with the page already in your policy to see what changes have been made. Second, place the page with the policy.

In comparing the two pages, if you think an error has been made or you don't understand the changes that were made, contact your agent. Your agent will explain the changes and, if necessary, see that any errors are promptly corrected. One section of the Declarations Page is labeled Coverages. It's usually divided into these sections: Coverages, Limits and Premiums. The Coverages section will describe the coverages that apply to the insured car:

The Limits section displays dolar amounts after each coverage to indicate the most the company will pay for each accident and each person involved in the accident. The deductable (the amount of the loss that you must pay) is shown for Comprehensive, Collision and any other applicable coverages. The Premiums sections shows the premium charged for each coverage. Total premiums for the policy is indicated at the bottom of this section. In addition, any optional coverages you have selected are shown on the Declarations Page, along with the premium charged for each.

Liability Coverage
When a claim is made against you or someone driving your car with your permission, your Liability Coverage pays for:

1. Bodily injury to others and damage to the property of others when you are liable (up to the policy limits).
2. All court costs and the costs of experienced lawyers to pretect your interests - whether you are at fault or not - whenever the claim or suit against you is based on an act that is covered under the policy.
3. The cost of bail bonds (up to $250), attachment and appeal bonds.
4. Up to $50 a day for loss of earnings because of trials you attend at the insurance company's request.

Medical Payments Coverage or Personal Injury Protection
Medical Payments Coverage pays for doctor and hospital bills resulting from injuries received in automobile accidents, or when bicyclists or pedestrians are struck by motor vehicles. Insured persons include you, your spouse, resident relatives and guest passengers riding in your auto. Reasonable funeral expenses are covered, within the limit of Medical Payments Coverage or the limit under Personal Injury Protection Coverage. States with "no-fault" auto insurance laws provide Personal Injury Protection. Although the coverages and limits vary by state, the coverage typically includes the medical benefits listed above, plus:

1. Work loss reimbursement for you, your spouse and resident relatives for wages lost because of injuries received in an auto accident.
2. Essential services expenses pays the costs of essential services you or your spouse would have performed except for an auto accident. For example, if you normally mow your lawn but are unable to do so because of an injury received in an auto accident, this coverage will pay for having the lawn mowed.

Uninsured Motorists Coverage Offered by law in most states, Uninsured Motorists Coverage addresses the problem of trying to collect compensation for bodily injury caused by uninsured drivers. This includes hit-and-run drivers. Uninsured Motorists Coverage usually is offered in the same amount as your Bodily Injury (BI) Liability Coverage. However, you may purchase Uninsured Motorists Coverage at less than your BI limits, as long as the coverage meets your state's financial responsibility limits (typically $25,000 each person, $50,000 each accident). If you have Uninsured Motorists Coverage, your insurance will pay for bodily injury or death from an auto accident caused by an uninsured or hit-and-run driver who is at fault. The coverage pays for you, your spouse, resident relatives and guest passengers riding in your auto.

Underinsured Motorists Coverage
If an accident resulting in bodily injury to you, your spouse, resident relatives and guest passengers costs more than the "at-fault" person's auto policy will pay, your Underinsured Motorists Coverage pays the difference between the other driver's bodily injury limits and the cost of your injuries (up to your limits). Underinsured Motorists Coverage varies by state. In some states, the term "underinsured" means both underinsured and uninsured. Underinsured Motorists Coverage may be included automatically as a coverage or may require additional premium. Check your policy for terms and conditions of your coverage.

Coverage For Damage To Your Auto
This coverage pays for direct and accidental loss to your insured auto or to a non-owned auto, including its equipment. Coverage for Damage to Your Auto is divided into two categories - Collision and Comprehensive. Collision Coverage pays for damage to your auto when your car collides with another auto or object, or when your car overturns (called "upset"). Whether you are at fault or not, this coverage will pay for all repairs needed to restore your car to the conditions before the accident, less the deductable. Comprehensive Coverage pays for practically all loss or damage to your car caused by hazards other than collision or upset, less the deductable. You're even covered while driving another person's car. Examples include loss from fire, theft, glass breakage, vandalism, riot, explosion, flood, falling objects, wind and others. Mechanical breakdown is not covered.

Optional Coverages
There are a number of optional coverages you can include in your auto policy, depending on your specific needs. The major Optional Coverages are:

1. Loan/Lease Coverage.
• If you loan or lease your car, there can be a difference - or gap - between the value of the loan or lease and the actual cash value of your car.
• If your policy provides Comprehensive and Collision Coverage, you can cover this difference between the unpaid amount on the loan or lease and the value of the auto with special Loan/Lease (aka Gap) Coverage.
• Loan/Lease Coverage applies only in the event of the unexpected ending of your loan or lease due to a total loss covered by your policy. This coverage will pay any unpaid amount due on the loan or lease for your covered auto less:
• The amount paid under your Comprehensive or Collision Coverage; and;
• Overdue loan/lease payments at the time of loss;
• Financial penalties imposed for excessive use, abnormal wear and tear, or high mileage;
• Security deposits not refunded by the lessor
• Cost for extended warranties or insurance purchased with the loan or lease; or
• Carry-over balances from previous loans or leases.
• The premium for Loan/Lease Coverages is normally a small precentage of the combined Comprehensive and Collision Coverage premium, prior to the adjustment for policy term. (Please note: The coverage is not available in all states.)
2. Loss of use helps pay for a rental car when your car is being repaired as a result of collision or comprehensive damage that exceeds the applicable deductable.
3. Towing and Labor costs privide a large measure of additional security. If you buy this option, your insurance company will pay reasonable expenses incurred each time the owned automobile or a non-owned automobile is disabled, for:
• Towing your car to the nearest place where necessary repairs can be made during regular business hours;
• Towing your car out if it is stuck on or next to a public street or highway;
• Mechanical labor up to one hour at the place of its breakdown;
• Change of a tire;
• Delivery of gasoline, oil or loaned battery, but not the cost of these items.

There is no dollar limit to this coverage, whether your car is disabled and you must have it towed or if you need a mechanic to come to the breakdown site.

Exclusions
Each coverage under your policy includes Exclusions, a list of losses your policy does not cover. It's very important to carefully read the Exclusions. Talk to your agent if you have questions, or need additional coverages.

Your Duties After An Accident Or Loss
This section is an explanation of what to do if you have a loss, and includes your obligation to:

1. Notify your insurance company promptly.
2. Take reasonable steps to protect your auto from further losses.
3. Cooperate in any investigation, settlement or defense.
4. Provide medical reports and other pertinent records.

General Provisions
The General Provisions of your auto policy include information on the territory where you are covered (the U.S., its territories and possessions, Puerto Rico and Canada), bankruptcy, policy changes, fraud, lawsuits, termination provisions, transfer of your interest int he policy, multiple cars and multiple policies, and your loss payable clause.

Deductibles
Your auto policy includes a brief statement regarding the Deductibles that may apply to the Collision and Comprehensive Coverages. Deductibles are a part of a loss for which you, the insured, are responsible. If you choose a larger deductible, you save money on premium costs. (See the Declarations Page for the amount of your deductibles.) Your deductible amount may vary for each automobile, and your choice will affect the amount of each premium. For example, if a person chooses a $500 deductible instead of a $100, the premium will be less. This is because the likelihood of a loss exceeding $500 is considerably less than a loss exceeding $100. When you assume more responsibility for loss, you pay less. A higher deductible also eliminates the insurance company's bookkeeping costs of processing smaller claims. This savings also is reflected in the smaller premium. If you rarely have a loss, the oney you save each year on your premium could easily add up (in a few years) to more than your deductible.

Why The Cost Of Your Auto Insurance May Increase
It is important to understand the types of losses or events that could effect the premium cost for your coverage. Your premium costs may increase in these instances:

1. An accident-free discount is lost or a premium surcharge is added as a result of an at-fault accident or traffic conviction.
2. Your insured auto is moved to a different garage location.
3. There is a change in the type of auto(s) being insured.
4. Another driver is added, such as a new driver who just turned 16.
5. There is a change in the way the vehicle is being used.
6. There is a general rate increase. This results from the loss experience of a rather large group of policyholders, rather than a loss or losses suffered by an individual policyholder. A general rate increase applies to all members of the group, not just to those individuals who had losses. Factors affecting a general rate increase include insurance fraud and increases in the cost of medical care, physician charges, hospital services, and auto repair.
7. When any of these situations occur, of if you have questions about these or other circumstances that might cause an increase in your auto premium, consult your independend agent.