How do I read a car insurance policy?
The first step is to understand how your read an automobile insurance policy. Most automobile insurance policies will have what is known as a declarations page. The declarations page is a brief summary of your insurance coverage and it will usually contain terms like “bodily injury” or “uninsured motorist coverage” followed by numbers such as 25,000/50,000 or 100,000/300,000.
In regard to these numbers, the first number, 25,000 for example, represents the maximum that insurance company will pay out to any one person under that coverage. The second number is the maximum that insurance company will pay out to everyone injured in the car wreck no matter how many people might have been injured. So now that we know how to read the declarations page, the question becomes what kind of insurance coverage do we need to protect our families?