Due to the escalating costs of auto insurance, many people find it difficult to find affordable auto insurance. They keep looking for the cheapest deal and when they find the insurance company that would consider his application. The new insurance company will ask for the declaration page of your previous insurance policy. We have heard a number of people asking these questions:
- Why is my new auto insurance company asking for the declaraion page of my previous auto insurance policy?
- What is an auto insurance policy declaration page or What is an insurance declaration page?
Here is your answer
The declaration page of an insurance policy is really a precious document as it contains the vital details of your driving and vehicle. The auto insurance policy declaration page is also known as the ‘Declaration’ or 'Dec' page. This is a document that contains the summary of a personal auto insurance policy such as the policyholder’s name, address, policy duration, vehicles insured, the details of overages it providers, its limits, the premium, claim payouts, lien holders, endorsements on your insurance policy and more. The expiry date mentioned in the declaration page is the most important factor that determines the cost of your future auto insurance policy. So take care not to allow it to expire or go for the new insurance well in advance like a month before it becomes invalid.
The new insurance company wants to have the declaration page from the previous insurance company to see the discounts you were availing and some times call it 'proof of prior discount' and want to make sure that there were no lapses in your prior policy.
Reading the declaration page of your auto insurance policy is very important. It contains every detail of your car insurance. You can also clarify your doubts with the agent or the company representative so that you are well informed when you have to use the auto insurance policy.
Whenever there is a change in the policy or at the time of its renewal, the insurance company provides a new declaration page showing the changes or the updates made. This will serve as proof of your latest coverage. Check it for accuracy and notify the insurer about errors if any. Always keep a copy of the declaration page as proof of auto insurance coverage.
The declaration page is asked for by the insurance companies when you approach them for obtaining an auto insurance policy. They look for proof of your having auto insurance previously and the details of such insurance. Having auto insurance previously will qualify you for a discount on the new policy. Most certainly it is used to find out how much discount you were given on the rate of the insurance.