Your insurance policy

In plain English: an insurance policy is the contract between you and your insurer. It says what the insurer will pay for, how much, under what conditions, and what you have to do in return.

Get the whole thing, not the summary

Most people have only seen a renewal notice or a one-page schedule. That isn't the policy. The full contract has several parts, and the ones that decide your claim are often at the back. Ask your insurer or broker for a complete certified copy, including every endorsement in force on the date of the accident. You're entitled to it, and it's worth asking in writing.

The parts that matter

• Declarations page or schedule. Who's insured, which vehicles, the policy period, your limits and your deductible or excess.
• Insuring agreement. The broad promise of what's covered.
• Definitions. Words in bold or quotes have special meanings. "Insured", "occupying" and "your covered auto" can decide if you're covered at all.
• Exclusions. What's taken out of cover.
• Conditions. Your duties: notice, cooperation, proof of loss, not settling without consent.
• Endorsements. Add-ons that change the standard wording. They override the main text.

How to read it without getting lost

1. Start with the declarations to see what coverages you actually bought.
2. For each coverage that might apply, read its insuring agreement.
3. Look up every defined term in that section.
4. Read the exclusions and endorsements that apply to it.
5. Finish with the conditions, and note any deadlines.

If the wording is unclear

Courts in the US, UK and Canada generally interpret genuinely ambiguous policy wording in favour of the policyholder, because the insurer wrote it. That isn't a guarantee, and it won't help against clear language. But if you read a clause two reasonable ways, say so in writing and ask the insurer to explain its reading.

Other people's policies

You usually won't see the at-fault driver's policy early on. In many US states you can request the limits, and some states require disclosure. In a lawsuit, the policy is normally disclosed through the court process.

Next: the declarations page · policy exclusions · insurance topics.

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