With the heavy increase in vehicle traffic on the roads in cities and towns all over the world, accidents too had been growing at an alarming pace. Even if you drive safely and cautiously, following all the road rules, you would never be able to predict the behavior of the other persons driving around you. Hence, it is obvious that you would need adequate protection to meet any unforeseen accidents and bodily injury to you and other passengers. Further, in Georgia, liability auto insurance policy is mandatory and should be purchased by every driver compulsorily. You should know the basics of auto insurance, if you had to cover yourself adequately against possible risks in case of an accident.
Insurance companies had developed certain standard formats for the purchase of auto insurance. Normally, the entire process of buying auto insurance could be divided into five parts. There could be minor variations between insurance companies in Georgia but the basic format would remain nearly the same.
Declarations in Auto Insurance Application
When you apply for auto insurance, the insurance company would expect you to provide complete details about you and the other members in your household. You should submit your full name and the names of your family members who would be driving, your house address, the types of vehicles in your house, the registration numbers of the vehicles, and the duration of the auto policy. You should also indicate the type of coverage that you wish to have. It is important that you provide correct information, because the insurance company would refuse to accept your claim, if any false information or omission is discovered.
When the insurance company accepts your application, it would enter into an agreement with you regarding the auto insurance. The agreement would describe the coverage options and the coverage limits that had been agreed upon. The agreement would stipulate the amount you had to pay every month during the tenancy of the auto insurance policy and the commitment of the insurance company to honor your claim in case of an accident, subject to the maximum limit on the policy.
Exclusions from Agreement
Apart from the commitments by you and the insurance company, the agreement would also contain the items that had been excluded from the ambit of the auto insurance. Since the exclusions would come into play when you make your claim if an accident occurs, you should discuss in detail with the insurance company to find out what items had been excluded. If you feel that any item should be included, you should make an appropriate request to the insurance company to that effect. This would save you substantial money later in future, even though the extra inclusions might cost you something more in the beginning.
Terms and Conditions
The auto insurance policy would have a special section describing the terms and conditions of the auto insurance between you and the insurance company. This section would stipulate your obligations of monthly premium, the consequences of late payment or default, the steps you should follow for filing claim when an accident occurs and the procedures if a disagreement arises between you and the insurance company.
This section sets out the various terms and terminologies used in the auto insurance policy agreement. Known as ‘fine print’, this section defines your rights and the rights of the insurance company. You should study this section carefully and understand the meaning of the terms, since some of them could be interpreted in ambiguous fashion.