Insurance policy
Also known as: Policy · Declarations page · Endorsement · Insurance contract
The written contract between insurer and policyholder that sets what is covered, for how much, under which conditions and at what premium.
Legal basis
NAIC, A Consumer's Guide to Auto Insurance
A US policy follows a familiar structure: the declarations page (who and what is insured, the policy period, coverages, limits, deductibles and premium), the insuring agreement, definitions, exclusions, conditions, and endorsements that amend the standard form. The NAIC's advice is to read the declarations page first, to confirm you bought the coverage you meant to buy.
Insurance is regulated by the states, so policy forms, cancellation rules and required coverages vary by state; an insurer must be licensed in the state where it writes the policy. The application answers — who drives, where the car is garaged, how it is used — are part of the bargain, and misstating them can put coverage at risk.
That is where the policy meets risk. The terms were priced for the declared use, and the actual use can drift over the term. Insurers that can see that drift — a vehicle garaged elsewhere, a different driver, commercial use under a personal policy — can adjust before the claim instead of disputing it after.
Frequently asked questions
What is a declarations page?
The summary page of an insurance policy. For auto insurance it lists the policy number, effective dates, covered vehicles, lienholder, coverages and limits, deductibles, premium, discounts and where the car is garaged. Read it first to check that the coverage matches what you asked for.