Understanding Your Auto Insurance Policy
Your policy is divided into sections. It details types of coverage, rights, and obligations under the policy and exclusions or limitations. Types of coverage may include liability, medical payments, uninsured / underinsured motorist, and coverage for damage to your auto.
An insurance policy is a legal contract. Your policy begins with a declarations page. This identifies the policy number and provides important information including the policy term, coverage limits, and information about the insured. It also contains a description of the vehicles covered under the policy.
If you received a loan to purchase your car and there is still an outstanding balance, most lenders will require to be listed as "loss payee" on the declarations page.
Your policy contains a general insuring agreement consisting of a broad statement listing the perils and risks covered under the contract. The insuring agreement also identifies exclusions, which are specific events and circumstances the policy will not cover. It will contain definitions to help make the coverage clear and prevent any misunderstandings.