If you’ve never read your auto insurance policy before, you’re not alone.
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If you’re new to auto insurance, you may not have actually laid eyes on an auto insurance policy. Typically, it’s a long document full of jargon that may be unfamiliar to you, with words like “endorsements,” “deductible,” and “limits.” How can you figure out what it all means, and how do you read it? We’ll break down exactly what an auto insurance policy looks like so you can actually understand what you’re paying for.
An auto insurance policy has three basic parts: the declarations page, the policy form, and a stack of other documents.
At the beginning of the policy, you’ll find the declarations page. It includes information such as:
For collision or comprehensive claims, before the insurance company contributes, you’ll have to reach your deductible, a limit you’ll set in your policy.
You can choose either a split or single limit. A split limit would be three numbers that describe your:
A single limit, on the other hand, is one number that encompasses all bodily injury and property damage costs.1
The policy form includes:
What is the minimum auto insurance coverage in your state? Learn more about what your state requires in our auto insurance FAQs.
These are some other important documents that your policy includes:
Hopefully, we’ve shed some light on not only what an auto insurance policy looks like but also how to read it. Legal jargon can be confusing, but with some education, you can be more certain of what you’re paying for in your auto insurance premiums.
Liability Insurance. Progressive Commercial. (2022).
Rating. International Risk Management Institute, Inc. (2022).
How To Read Your Car Insurance Policy. American Family Insurance. (2022).