Understanding your auto insurance policy

Understanding your auto 

insurance policy

Your insurance policy is a contract between you and your insurance company. It spells out exactly 

what the company agrees to do in exchange for the premium that you pay. This contract is divided 

into two sections: a declarations page and the policy itself.

The declarations page

This section of the policy includes basic details of 

the agreement. It is important that you review this 

page to make sure all the information is correct and 

all the coverages you requested are included. The 

declarations page includes:

Name of the insurance company

Name(s) of the policyholder(s)

Policy number

Policy period

Description of the vehicle(s) insured

Coverages purchased

Limits of liability and deductibles purchased

Premium charge for each coverage

List of forms that are a part of the policy

The policy

The second part of your insurance contract is the 

policy itself. This includes:

Insuring agreement

Definitions

When and where coverage applies

Conditions if the vehicle is financed

General conditions

Mutual conditions

Exceptions and endorsements of the policy