Having car insurance is just another part of being a legal driver. However, many people don’t fully understand what an initial quote entails or how the insurance company comes to their price and coverage estimate. Here’s a closer look at these variables to make auto insurance shopping a lot smoother. 

What Is the Declaration Page?

When you receive your quote details, the main page—known as the policy declarations page—will fully list the policy details, including personal details, vehicles insured, policy discounts, and applicable deductibles. At the top of this page, there should be a set of three numbers, which summarize the total dollar amounts the policy will cover. 

For examples, a “25/75/20” number series would indicate three coverage levels in the event of an accident. The 25 represents a $25,000 bodily injury maximum coverage per person involved. The 75 means a $75,000 bodily injury maximum coverage for all injuries of people involved. Finally, the 20 denotes a $20,000 maximum property limit for damages caused by your car. These numbers can be raised or lowered based on your coverage needs.

Other terms you might see on this page include actual cash value and replacement cost value. Actual cash value indicates what the insurance company will pay out if the car is totaled. Replacement cost is a more expensive option because it reimburses you for what you initially paid for the vehicle when it was new.

What Are the Types of Car Insurance Coverage?

Most states require drivers to have a minimum of liability and personal injury protection (PIP) insurance. Liability covers damages and injuries to the other driver or property owner in an at-fault accident—one caused by you. PIP coverage pays for any medical and injury treatment for you or passengers no matter who is at fault.

Adding collision coverage would make sure any damage caused to your vehicle in an accident is repaired no matter who caused it. Usually, these policies will involve a deductible ranging from $250 to $1,000. There’s also the option of comprehensive coverage, which handles damage to your car that’s caused by events, such as weather, theft, animal-related accidents, and fire, that are out of your control. 

Finally, the premiums offered in your quote are determined by several factors, such as driving history, location, vehicle type, and even your credit score. These factors help providers estimate your level of driver risk. Safe driving and financial responsibility are two areas you can take steps to improve in order to secure a more favorable quote.

If you’re in search of affordable car insurance, turn to the team at Lafever Insurance Agency in Cookeville, TN. Since 1978, this independent insurance agent has provided auto coverage for a wide range of clients in the Upper Cumberland community. No matter what your vehicle or driving history is like, they’ll help find a policy that meets your needs. Call them today at (931) 526-3377 for a quote and visit their website to learn more about their coverage services.