Question: We are going to be taking a road trip across several states this summer and want to make sure we are covered. Do we need to get insurance coverage for every state we go through?

Answer: Good question and the answer is no. The insurance coverage you have on your car in your home state follows you around the entire nation, regardless of the insurance laws for the different states you travel through. State insurance laws are for those that reside in that state, not for those just passing through or visiting.

You do however need to make sure that you are abiding by the different traffic laws in each different state you visit.

Your car insurance policy package broken down into easy to understand sections.

Breaking down your car insurance policy package.

Opening that huge package from an insurance company that is your new car insurance policy leaves most of us so overwhelmed that we just pull out the insurance cards then slide the rest back in the envelope and quietly file it away. Well, filed away until we actually need it after an accident to see if we have coverage. Even then because it is a legal document it can still leave us scratching our head.

So here is a quick an easy guide to help you navigate that daunting package a little easier.  Now keep in mind that every insurance company is different, so this is just a general guide.

Breaking Down the Car Insurance Policy

Every car insurance policy can be broken down into sections and understanding one section at a time can make it a lot easier to understand the policy as a whole. In general, car insurance policies all have the following:

1. Declarations Page
2. Insurance Statement
3. Conditions
4. Exclusions
5. Definitions
6. Endorsements

Declarations Page

The declarations page has all of your personal information, your specific coverages and also your billing information. You will actually get a new declarations page every time your insurance renews because the information will change at each renewal. However, this is the only part of the insurance policy that you will get at renewal as the rest of the policy package stays the same so there is no reason to send you the other parts again.

You will, however, get a full packet if there have been significant changes in any of the other parts of the insurance contract.

Insurance Statement

The insurance statement is exactly what it sounds like, it is a statement from the insurance company stating that through this contract they are agreeing to provide you insurance coverage.

Conditions

Specifically outlines what your responsibilities as the policyholder are and the responsibilities of the insurance company.  It can also include how to cancel your policy, billing options, and other legal obligatory information.

Exclusions

Defines in details what is NOT covered under your insurance policy. There is no gray area here, the insurance company is very specific about things they don’t cover.

Definitions

This is the insurance company’s version of their dictionary.  Everything term that could possibly be confusing is right here specifically defined for you.

Endorsements

Some insurance policies don’t have an endorsement section or there is nothing in it, this is only because there are no endorsements on the policy.  Endorsements are additional coverages that are not included in the basic policy but that the insurance company offers to add on for you. Those additional coverages and their details will be added here.

Yes, an insurance policy packet can be daunting, but it is in your best interest to understand exactly what you are paying for and to make sure you have the car insurance coverage you need in the event of a catastrophe.

Question: I purchased a car insurance policy through a website like yours online, but now I have questions about my policy, who can I ask? Can you answer my question?

Answer: When you purchase a car insurance policy through a website like Car Insurance Guidebook you are actually placed with a car insurance company and even an agent. All of this information can be found on your declarations page of the new insurance policy that you just purchased. They will be the ones that you can contact to answer any question that you have or to make any changes to your policy.

Car Insurance Guidebook is simply a tool that makes finding car insurance easier, we are not a car insurance company or agency.

Question: A person on my policy got in his 2nd minor accident. He hit the curb and blew out his tire. No damage done to other car or person. Exchanged insurance info but both decided not to call cops or file claim. Now other party texted my friend and said their insurance is going to be calling him. What will happen because we didn’t put claim in or report anything at the time. It is now 2 weeks after accident. No pictures or police report were done.

Answer: There is really nothing you can do but wait.  You and your friend did nothing wrong as it was decided at the time to not call the police or file a claim and you exchanged information at the scene of the accident. This is not a hit and run situation. If the other insurance company calls, then your friend will need to give a statement.

Other than that, there is nothing for you to do.

Question:  Hello, My fiancé lives in Canada and I live in the states. What’s the best way for me to lease a vehicle which we could both drive when in Canada? The car would be in Canada more often than in the US. Thanks

Answer: You are going to have to lease and insure the car in Canada.  If the car is mostly in Canada there are very few if any US based insurance companies that will insure it.  Also, you will have to make sure with your Canadian insurance if they will cover you when the vehicle is in the United States.