How to Read a Car Insurance Policy
- Learn how to read your car insurance policy and locate information like your declaration page, policy number, coverages, and more.
- Policy documents can be useful tools when shopping for car insurance— comparing coverage options directly can help inform decisions.
Ready to start comparing? Enter your ZIP code below.
How to read your car insurance policy
Your car insurance policy might not be the most exciting read, but it contains essential details about your coverage, who and what is protected, and your policy limits. Understanding your policy is key to ensuring you have the right coverage—especially when shopping for quotes. After all, a low rate doesn’t mean much if your insurance doesn’t fully protect you.
The most important parts of your policy documents are the declarations page and the policy form. Read on below for more information on each.
The declaration page
An insurance declaration page — or dec page — declares the basics of who and what is covered. An insurance declaration page will contain the following information:
- Policy number: This is your unique policy number, which can be found on your dec page, ID cards, and billing statement. You'll need this when filing a claim, getting pulled over, and when renewing license plates or registration.
- Policy term: Lists the effective date and expiration date of your policy. Don’t wait until your policy period has ended to renew, as any lapse in insurance coverage can be problematic.
- Policyholder address: The address listed must be the policyholder's and the primary location at which the vehicle is kept.
- Named insured: Any driving resident of your household should be listed under “named insured” or “additional drivers” unless you specifically exclude them.
- Coverages: Lists bodily injury and property damage liability (required), as well as any elected coverages such as comprehensive, collision, etc.
- Policy limits/deductible: Lists the maximum amount that each coverage will pay as well as any required deductible you have to pay out of pocket.
- Premium: The amount you’ll pay over the course of the policy term. Can be listed as a six-month or one-year total.
Check out the following resources for how to find your:
What is an insurance policy form?
Going into a bit more depth than the insurance declarations page, the policy form outlines various coverages as well as the insuring agreement, conditions, exclusions, and endorsements for your policy. These go into more detail about what is covered (or not covered) and your specific obligations.
This is where your insurance company promises to actually provide coverage in exchange for the premium you pay. It also explains the specifics of what is covered in your policy. This is where you’ll find any perils (causes of loss) that are explicitly covered.
Every insurance policy comes with conditions—rules both you and the insurer must follow. If you don’t meet them, coverage can be denied. An example of a condition might include duties after an accident: what documents are required and how soon you must file a claim. If you miss the deadline, your claim could be rejected.
You’ll also find cancellation terms here. You can cancel your policy at any time, but your insurer needs to give notice and can only cancel for specific reasons.
Knowing what your car insurance policy won’t cover is nearly as important as being aware of what it does cover. The policy exclusions section lists any perils that are not covered. These exclusions can differ by state and from one driver to another.
Typical insurance policy exclusions include:
- Intentional damage or bodily injury
- Government action or confiscation
- Using a vehicle for prearranged racing events
- Catastrophic events: war, nuclear accidents, etc...
- Using your vehicle for delivery/ride-share purposes
This is where you add any specific coverages you may need. If you own a modified vehicle, be it for mobility, performance, or cosmetic reasons, your modifications will require extra coverage. Other endorsements include things like rental car coverage, roadside assistance, or coverage for transportation costs should your vehicle be unable to be driven. It’s important to note the cost of your premiums will likely be affected by any additional endorsements.
Compare auto insurance rates from top companies today!
What are the rights and responsibilities of a policyholder?
As the policyholder, it’s your job to keep your insurance active by paying your premiums on time— missing a payment could lead to extra fees or even a lapse in coverage. You’re also responsible for keeping your policy details up to date, especially after major life changes like marriage or the death of a family member.
Make sure you’re following the terms of your policy, and if anything’s unclear, don’t hesitate to ask your insurer for clarification. If you ever disagree with a claims decision, you have the right to appeal.
Being informed about your rights and responsibilities ensures you can manage your policy effectively and make necessary adjustments when needed.
What can a policyholder do?
As the owner of the policy, you have certain rights and control over its terms, including the ability to:
- Obtain a copy of your policy
- Cancel or update coverage
- Add beneficiaries (as allowed by the provider)
- File an insurance claim
- Appeal insurer decisions
Types of car insurance coverage
There are different types of auto insurance available depending on your situation and individual needs. Take a look at some of the common types of coverage below and consider what may be a good option for you. Then, call your own insurance agent or reach out to The Zebra's agency to learn more and discuss coverage with an expert.
Understanding car insurance liability limits
It’s important to know your coverage—especially if you’re at fault in an accident. If damages exceed your liability limits, you could be on the hook personally.
Liability limits are often shown as split limits. For example, a policy with 25/50/30 covers:
- Up to $25,000 bodily injury per person
- Up to $50,000 bodily injury per accident
- Up to $30,000 in property damage
Some policies use a combined single limit instead. This merges bodily injury and property damage into one total—for example, $105,000 total coverage.
A final word from our trusted expert:
"A lot of people focus only on the cost of insurance without truly comparing coverage apples to apples. I always encourage folks to go line by line through their policy. When I owned an agency and handled commercial accounts, I’d take the time to review every detail with clients before they switched. Often, you’ll discover that certain coverages were removed, limits were lowered, or deductibles were increased. It’s essential to ensure all coverages are equal first, and then compare the price."
Katie Gold, Head of Agency at The Zebra, on understanding your policy documents
Buy car insurance online and start saving.
Related Content
- What to do After a Car Accident
- Travelers Declarations page
- Liberty Mutual Declarations page
- Car Insurance Fraud
- How to Update Your Driver’s License When Moving to a New State
- Agreed Value vs. Stated Value Insurance
- Is Car Insurance Tax-Deductible?
- How Much Car Insurance Do You Need?
- What is Permissive Use Car Insurance?
- How a Vehicle Recall Impacts Car Insurance
RECENT QUESTIONS
Other people are also asking...
How long into getting a new policy can I file a claim?
How do I remove a car from my insurance policy?
Can an insurance company force me to be added to a policy?
Can I remove a vehicle from my policy if it is broken down?
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.