Your insurance policy is a legally-binding document that outlines your rights and obligations should you be involved in an accident. As a rule, you should always read your policy carefully, cover to cover, including the "fine-print." This will prevent any surprises in case you need to make a claim.

Typically, a policy consists of five distinctive parts:

Declarations
This part of the policy declares information about you, the policy holder; each policy is personalized to every driver. It contains vital information such as name and address, make and model of the automobile, vehicle identification number (VIN), policy duration and policy number.
It also indicates other policy information like types of coverage purchased, other drivers covered, policy limits and deductibles, premium and additional forms or endorsements. Always give accurate and correct information, otherwise your policy may be declared invalid when you make a claim.

Coverage Parts
The coverages purchased are detailed here. Types of coverage listed usually include: General Liability and Property Damage, Medical, Uninsured and Underinsured Motorists Liability and Property Damanage, Collision and Comprehensive.

Exclusions
Unlike "Coverage Parts," this section details what is not covered. This is very important in that it highlights the policy's limitations. Read this section carefully. You don't want to find out you are lacking coverage you thought you had when you have to make a claim.

Conditions
The legal aspects of the policy are outlined here, including the duties and responsibilities of both the insurance company and the policy holder (i.e. premium payment obligations and steps to file a claim). Special procedures for disagreement resolution and policy cancellations are detailed as well.

Definitions/General Provisions
The rights of the policyholder and the insurance company are defined in this section (often referred to as the "fine print").