Understanding Your Automobile Policy Declarations

Every automobile insurance policy comes with a separate page called a “declarations page”, or “declarations sheet”.  In insurance lingo it is abbreviated “dec sheet”.  On the dec sheet you will find all of the information regarding your coverage for each of the vehicles you have insured as well as the premium for each coverage.  The dec sheet identifies your policy with a policy number and it includes the dates of your policy period, and when the policy was first processed.

The declarations page lists all of your insured vehicles and identifies them by their vehicle identification number (VIN), year, make, model and body type.  On the sample dec sheet below, there are two vehicles listed: one is a 2006 Honda Pilot SUV, and the other is a 1998 Volkswagen Jetta.

The coverages noted include Liability: Bodily Injury (BI), Uninsured Motorist (UM), Property Damage (PD); Medical Payments (Med Pay), Comprehensive (Comp), Collision (Coll), All Risks and Automobile Death Benefits.  Liability coverages have specific limits.  On this dec sheet they are written out, but often they will be listed like this: 100/300/25.  This means that for BI, you are covered up to $100,000 per person and up to $300,000 per occurrence (accident), no matter how many people are injured.  The 25 stands for $25,000 coverage for PD (which is damage you cause to someone else’s property).  Other coverage amounts would be written the same way, such as 30/60 ($30,000/$60,000) or 500/1 mil ($500,000/$1 mil). 

Uninsured Motorist coverage is often written just like BI: 30/60, 50/100, 100/300 or 500/1 mil depending on how much coverage you choose.  The sample dec sheet shows $100,000 for each person and $300,000 for each accident (all persons combined).   Often, but not always, the limits are the same for BI and UM.

In addition to BI, PD and UM coverage, the top section of coverages includes Med Pay.  If there are injuries in your vehicle, this covers you and/or your passengers when an accident occurs, regardless of fault.  The sample shows coverage in the amount of $5,000 per person.  There is no “per occurrence” amount for Med Pay; each injured person’s medical bills will be covered up to $5,000.

Each type of coverage has a premium amount listed to the right.  The higher your coverage limits, the higher your premium will be.  You pay more to get more. 

Below the Liability and Med Pay coverages, you will find coverage for damage to your own car.  Comprehensive refers to damage to your vehicle that is caused by something other than a crash, such as vandalism, or theft.  There is no limit, but there is a deductible.  The sample dec sheet shows a $100 deductible, so you pay this amount each time you make a claim for damages in excess of $100, and the insurer pays the rest.  Collision coverage is for damage to your vehicle caused by an accident.  Again, there is a deductible.  The sample dec sheet shows a $200 deductible per claim.  The higher the deductible, the lower your premium will be. 

All Risks coverage refers to insurance for mechanical breakdowns and wear and tear on your vehicle.  It does not include coverage for damage from collisions or anything falling under comprehensive coverage. This sample dec sheet includes no coverage for these items.  Many people don’t buy this coverage.  If you have a car three to five years old or newer, much of this may be covered under your warranty. 

Automobile Death Benefits cover insureds who die in an accident and are paid according to a “limit code” which you see on the dec sheet.  This policy provides $15,000 limits, which are paid to your beneficiary(ies).

The dec sheet notes any discounts you are getting from your insurance company.  The sample sheet shows good driver discounts for both named insureds and a multiple car discount.  It also has a space for a loss payee, which is the bank or credit union that loaned you money to purchase the vehicle and holds the ownership certificate until the loan is paid off.

Now that you’re an expert on reading a dec sheet, you’ll be better informed about the coverages on your policy and what premiums you are paying for each.

See sample dec sheet below: