Plain-English Policy Explainer

Turns the deductibles, limits, and exclusions on one customer's policy into a clear written explanation with worked dollar examples.

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Before and after

BEFORE · what the owner typed

Agent's input: "Customer is Joyce Melton, auto policy on her 2014 Ford F-250, gray. I'm Jorge Mann at Hartmont Insurance Agency, 614 Gablemont St, Irongate, 319-555-0108. She asked what the deductible thing means and what's actually covered. Collision deductible 1000. Comp deductible 500. Liability is 100/300/50. Uninsured motorist 50/100. Rental reimbursement 40 a day, max 30 days. Towing 100 per breakdown. Exclusions to explain: using the truck for hire, like hauling passengers or delivering stuff for pay. Racing. Intentional damage. Wear and tear. Personal stuff stolen out of the truck isn't covered under auto. Custom equipment like a bed toolbox or lift kit not covered unless we add an endorsement. Show her: if she's in a collision and repair is 4200. And if she hits someone's vehicle worth 65000. Add the line that the policy wording controls and the company decides claims. She mentioned she hauls her own tools to jobs sometimes, not sure how that fits."

AFTER · what the skill produced

Hi Joyce,

Thank you for asking about your policy. Here is a plain-English walk-through of your coverage on the 2014 Ford F-250, gray.

What you pay first (deductibles)

Collision deductible: $1,000. If your truck is damaged in a collision, you pay the first $1,000 of the covered repair cost and the policy pays the rest.
Comprehensive deductible: $500. This is the amount you pay first on a covered comprehensive claim.

The most the policy pays (limits)

Liability is 100/300/50. That means up to $100,000 for injuries to any one person, up to $300,000 for all injuries in one accident, and up to $50,000 for damage to other people's property.
Uninsured motorist is 50/100. That means up to $50,000 per person and up to $100,000 per accident.
Rental reimbursement is $40 a day for up to 30 days. That is a most of $1,200 (30 days x $40).
Towing is $100 per breakdown.

What is not covered (exclusions)

Using the truck for hire, such as hauling passengers or delivering goods for pay
Racing
Intentional damage
Wear and tear
Personal belongings stolen from the truck. These are not covered under an auto policy.
Custom equipment, such as a bed toolbox or lift kit, unless we add an endorsement

What this looks like in real numbers

Deductible example: Say a collision repair comes to $4,200. You pay your $1,000 deductible, and the policy would pay the remaining $3,200 if the claim is covered ($4,200 - $1,000 = $3,200).
Limit example: Say you hit a vehicle worth $65,000. Your property damage liability limit is $50,000, so $15,000 is above the limit ($65,000 - $50,000 = $15,000). The policy does not pay that $15,000. We recommend we review your liability limits together. For questions about what you would legally owe, please speak with a licensed attorney.

These are illustrations only. The policy wording controls, and the insurance company decides every claim.

If you have any questions, call me at 319-555-0108 or stop by 614 Gablemont St in Irongate.

Jorge Mann
Hartmont Insurance Agency

Questions for the owner

Joyce mentioned she hauls her own tools to jobs sometimes. Do you want to check how that fits the policy's use and exclusion wording before sending this? I did not state whether it is covered.
Do you want to add a line offering a quote for a bed toolbox endorsement?
Should the message include the policy number or effective dates? None were provided.

What it does

Turns the deductibles, limits, and exclusions on one customer's policy into a clear written explanation with worked dollar examples. The customer sees what they pay first, the most the policy pays, and what the policy does not cover.

Use it when: Use when an insurance agent needs to explain a specific customer's deductibles, limits, and exclusions in plain English, such as: explain this policy to my client, what does this deductible mean, walk the customer through their coverage, or write up what is and is not covered.