Suggestions to Help You Understand Your Auto Insurance Policy

Tips to help you make sense of your auto insurance.

If you’ve ever attempted to read through your auto insurance policy, you may have been put off by the complicated legal terms and confusing industry jargon.  However, it’s important that you have a good understanding of exactly what your policy will cover.  This is why you should employ these tips to help you make sense of your auto insurance.

Declarations Page

The most important section of your auto policy is your declarations page.  This section lists the coverages that your policy offers and includes details about your coverage levels, deductibles, named insureds, and the cost of your policy.  When looking over your declarations page, you should review your personal information to ensure that it is accurate.  You should also check to make sure your policy lists all the drivers you want covered, as well as all the vehicles you want insured.

Coverage Levels

You should also read through the portion of your policy that specifically lists the details about your coverage.  Some of the most common auto coverages include the following:

  • Liability– Pays for third-party medical treatment and property repairs that may result from an accident that you have caused. Liability insurance is state-mandated, so you are required to carry certain coverage minimums.  Liability insurance is broken down into three amounts: per personal limit for bodily injury, per incident limit for bodily injury, and property damage limit.  If you have a per person limit of $100,000, a per incident limit of $300,000, and a property damage limit of $100,000; then your limits will be recorded in your policy as “100/300/100.”
  • Collision– Pays for the damage that your car sustains during a collision event.
  • Comprehensive– Pays for the damage that your car sustains due to a non-collision event. For instance, comprehensive insurance will cover the damages caused by fire, falling objects, explosions, wind, hail, vandalism, and so on.


In your policy, the items listed as “exclusions” are not covered.  Common exclusions under your liability coverage include:

  • Intentional bodily injury or property damage to others
  • Property damage to your own property
  • Damages caused when using your vehicle for livery purposes
  • Damages caused when using your vehicles for business purposes

Common exclusions under your collision and comprehensive insurance include:

  • Intentional damage to your own vehicle
  • Damage caused by war, biochemical attack, and nuclear explosion
  • Damage to or loss of personal items that are not permanently installed in your vehicle
  • Coverage for vehicles used for competing in any prearranged or organized racing or speed contest

Try out these tips to help you make sense of your auto insurance.  Do you need further assistance with your car coverage?  If so, then contact the experts at The Reardon Agency.  Our dedicated team is eager to help you with your auto insurance needs today.

Comments are closed.

Call Us Get a Quote