In the state of Idaho, every vehicle driver must have valid auto insurance. Failure to do so could result in the suspension of the driving license. You would be required to apply for reinstatement of the driving license from the Idaho Transportation Department, after paying the appropriate reinstatement fee. You should also provide proof of holding a liability insurance coverage from an insurance company at the time of reinstatement. Hence, it is important that you understand the auto insurance basics in the state of Idaho.
Auto insurance policies have five important sections or parts. The exact details could vary from one insurance company to another but the basics remain the same. Let us consider them briefly.
Declarations by the Applicant for Auto Insurance
The first process in purchasing auto insurance policy is the declarations submitted to the insurance company by the applicant. You are expected to provide true details of your full name, the names of other drivers in your household, the number of vehicles in your house and their makes, models, and identification numbers, and the period for which the auto insurance policy is desired. The applicant should also specify what type of auto insurance coverages are intended to be purchased, the maximum limit for each coverage, and the deductibles that the applicant is willing to commit. Any false information would result in the denial of the claim made by you when you get involved in an accident.
The agreement section is one of the most important in auto insurance policy, since the type of coverages purchased by the applicant, the limit for each type of coverage, the monthly premium amounts to be paid, and the commitment by the insurance company to honor claims after auto accidents are explicitly stated in this agreement. The applicant could opt for a single coverage like bodily injury liability coverage, which is statutorily required in Idaho or could opt for multiple coverages by including other coverages like collision, comprehensive, medical, personal injury protection or PIP, etc. These would be mentioned clearly in this section.
Exclusions from Policy Agreement
The insurance company would fix the premium on the number of risks that are included in the policy agreement. Several risks could remain excluded from the policy due to the higher costs involved when a claim is made. The applicant should carefully analyze the risks that had been included and those that had been excluded. Certain items might be too costly and not really warranted. They could safely be excluded from the policy. A few other items not included by the insurance company might be included at a nominally higher cost. Hence, studying the exclusions is definitely important.
Agreement Terms and Conditions
The responsibilities and obligations of the policyholder and the insurance company mutually to each other would be laid down in this section. The payment schedule of premium amounts, the process of filing auto accident claims, procedures for resolving disagreements, and other such legal bindings would be included in this portion.
The definitions, known as ‘fine print’ by insurance experts, are the explanations for the terms used in the auto insurance policy. Sometimes, the interpretations of the terms or definitions could be ambiguous. Hence, it would be advisable to take the guidance of an experienced auto insurance agent in understanding this section, as well as the implications of the other sections, before purchasing auto insurance policy in Idaho.