A guide to understanding your car insurance policy from ABC Dennis Insurance

Understanding your car insurance policy can sometimes be challenging. You may even feel like you’re trying to decode a foreign language due to the jargon.

Insurance policies are notorious for their complex language and terms because they deal with complex issues. However, understanding your policy is crucial to ensure you have enough coverage in the event of an accident or damage. This guide will help you decode your car insurance policy, breaking down the main components into simpler terms.

Declarations Page

The declarations page summarizes your policy’s critical aspects, such as the policy number, policyholder’s name, policy period, the covered vehicle(s), coverage limits, and premium.

Policy Number

The policy number is your unique identifier, like a student ID or social security number. You’ll need it whenever you contact your insurance provider about your policy.

Policyholder’s Name

This is usually the vehicle’s main driver or the person who took out the policy.

Policy Period

The policy period signifies the start and end date of your coverage.

Covered Vehicles

The make, model, and year of the cars insured under the policy.

Coverage Limits

The coverage limits are the maximum amounts your insurer will pay in the event of a claim.


The premium is the amount you must pay for the policy, often monthly or annually.

Coverage Types

Your policy will list different types of coverage, each covering different situations. The main types you will typically see include:

  • Liability Coverage covers the costs if you’re at fault in an accident that results in an injury to another person or if you damage property. It’s usually split into bodily injury liability and property damage liability.
  • Collision Coverage covers repairs to your car if you are in an accident with another vehicle or object.
  • Comprehensive Coverage covers damage to your vehicle caused by non-collision events like theft, vandalism, fire, or natural disasters.
  • Uninsured/Underinsured Motorist Coverage covers your injuries in an accident with a driver who doesn’t have enough (or any) insurance to cover the damages for which they are liable.

Deductible Amounts

The deductible is the amount you’ll pay out-of-pocket before your insurance policy pays. A higher deductible typically means a lower premium but more cost to you if you make a claim.

Endorsements and Exclusions

Endorsements are optional additions to your coverage, providing additional protection at an extra cost. Exclusions, on the other hand, are situations where your policy does not provide coverage. Both are crucial to understand as they dictate the boundaries of your policy.

Policy Conditions and Duties After Loss

The policy conditions outline the rules you must follow to keep your coverage valid. Duties after loss include steps you need to take in the event of a loss, such as notifying your insurance company and cooperating with the investigation.

Final Thoughts

While this guide provides a basic understanding of your car insurance policy, every policy is unique. Be sure to contact your insurance agent if you’re unsure about any part of your policy. Understanding your policy helps ensure that you’re not over- or under-insured and that you know what to expect in the event of a claim.

ABC Dennis Insurance

ABC Dennis Insurance is an independent insurance agency established in 1997 that provides automobile insurance to its customers. If you have not reviewed your insurance coverages this year, please call our office at (813) 949-7765 or email us.

Besides auto insurance, we can help with all your insurance needs. As an independent agency, we find the best insurance coverage with the most competitive rates.