What does an auto insurance policy look like?
An insurance policy lists the coverage your chosen company will provide for you in case of an accident. An average 6 month policy in the U.S. is around $600.
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
UPDATED: Sep 5, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
All auto insurance policies share some similarities. Most policies include the name of the insurance carrier, your policy number, the expiration date, personal information, the lien holder, a vehicle description, two signatures, coverage details, the premium amount, and riders or exclusions. These are all factors to consider when you manage your car insurance policy.
Generally, the coverage and premium amounts are the most important components of the policy since they explain what will be covered in the event of an accident.
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- Your insurance policy has important information that is specific to you
- You may your lienholder information on the policy if you still owe money on your car
- The most important part of your policy will be your coverage and premium information
What does the coverage and premium information on my policy mean?
The coverage tells you what the auto insurance company will cover you for. The premium is how much your payments will be. You will want to look for this information when filing a claim to make sure you get what you are entitled to according to your policy.
The coverage type will show you what your insurance company will and will not cover. There will usually be a description that indicates how much you will be expected to pay.
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What other sections of the policy will affect my claim?
Other sections of your policy that you may want to look for when filing a claim are the rider and exclusion sections.
A rider is an optional component that you can pay extra for. One example of a rider is roadside assistance.
An exclusion is something that is not covered on your auto insurance policy. For example, an exclusion might be glass damage or a crack in the windshield. Make sure you review these components and contact your insurer if something does not look right.
What can I expect to find under the other sections of my policy?
Other sections of your policy are self-explanatory, like the auto insurance carrier name and your policy number. Keep in mind, though, that a company’s legal name may be slightly different than the name they market.
The expiration date of the policy lets you know how long your coverage lasts. You will be given ample opportunities by your insurance company to renew your policy before it expires.
Your personal information such as your name, address, and telephone number will also be on the policy. Be sure to check this information so that your insurer can communicate with you easily.
What information will there be if I still owe money on my car?
If you still own money on your vehicle, your lien holder will be included in your policy. This is the company or bank that owns your vehicle and would receive money if the vehicle was totaled.
Your vehicle’s description will also be on the policy. The make, model, year, and color of the vehicle will appear along with the vehicle identification number (VIN). This number is unique to your vehicle and will need to be given to the police if your vehicle is stolen.
The signature line includes a signature from the agent who sold you the policy and the head of the company. These are generally computer-generated signatures but they still serve to make the policy active.
Now that you have all the information you need, you can find the best car insurance that works for you. Start comparing auto insurance rates now by entering your ZIP code below!
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Frequently Asked Questions
What is an auto insurance policy?
An auto insurance policy is a legal contract between an individual (the policyholder) and an insurance company. It outlines the terms and conditions of coverage for the policyholder’s vehicle(s) against various risks, such as accidents, theft, and damage.
How can I obtain an auto insurance policy?
To obtain an auto insurance policy, you can approach insurance companies directly or work with an insurance agent or broker. You’ll typically need to provide information about yourself, your vehicle(s), and your driving history. The insurance company will evaluate these details to determine the premium cost and coverage options available to you.
Can I customize the coverage in my auto insurance policy?
Yes, you can often customize your auto insurance coverage based on your needs and preferences. Insurance companies offer various optional coverages and endorsements that can be added to your policy. However, some coverages may be required by law or your lender if you have an auto loan.
How often should I review my auto insurance policy?
It is recommended to review your auto insurance policy at least once a year or whenever you have major life changes, such as purchasing a new vehicle, moving to a new location, or experiencing significant changes in your driving habits. Regular reviews ensure that your coverage remains adequate and that you’re taking advantage of any discounts or adjustments that may be available to you.
How is the cost of an auto insurance policy determined?
The cost of an auto insurance policy is determined by various factors, including your driving record, the type of vehicle you drive, your age and gender, your location, the coverage options you choose, and the deductible amounts. Insurance companies assess these factors to evaluate the risk associated with insuring you and calculate a premium accordingly.
Are there different types of auto insurance policies?
While the basic components of an auto insurance policy remain similar, there are different types of policies available to meet specific needs. Common types include personal auto insurance policies, which cover vehicles primarily used for personal purposes, and commercial auto insurance policies, which provide coverage for vehicles used for business purposes. Policies may also differ based on the types and levels of coverage offered.
Can I insure multiple vehicles under the same policy?
Yes, it is possible to insure multiple vehicles under the same auto insurance policy. Insurance companies often offer multi-vehicle discounts, making it convenient and cost-effective to cover all your vehicles under a single policy. This can include cars, motorcycles, trucks, and other types of vehicles.
What should I do if I want to make changes to my auto insurance policy?
If you need to make changes to your auto insurance policy, such as adding or removing vehicles, changing coverage limits, or updating your personal information, you should contact your insurance company or agent. They will guide you through the process and provide the necessary forms or documentation to make the requested changes.
What happens if I let my auto insurance policy lapse?
Allowing your auto insurance policy to lapse means that you no longer have coverage for your vehicle. This can result in legal consequences, such as fines or penalties, and may make it difficult for you to obtain insurance in the future. Additionally, if you’re involved in an accident or incur losses during the period without coverage, you would be personally responsible for the costs.
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Kalyn Johnson
Insurance Claims Support & Sr. Adjuster
Kalyn grew up in an insurance family with a grandfather, aunt, and uncle leading successful careers as insurance agents. She soon found she has similar interests and followed in their footsteps. After spending about ten years working in the insurance industry as both an appraiser dispatcher and a senior property claims adjuster, she decided to combine her years of insurance experience with another...
Insurance Claims Support & Sr. Adjuster
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.