Read Your Insurance Declarations Page
Your NC auto insurance declarations page is a one-page summary of your entire policy. Learn what every line means and spot red flags in your coverage.
The Bottom Line
Your insurance declarations page is the one-page summary of your entire auto policy -- every coverage type, every limit, every deductible, and every premium. Most people never read it until after an accident, and by then it is too late to change anything. Understanding each line on your dec page takes 10 minutes and can prevent a financial catastrophe when you need your coverage most.
What Is the Declarations Page?
The declarations page -- universally called the "dec page" -- is a one- or two-page document that summarizes your auto insurance policy. It is the first page of your policy and the most important document you receive from your insurer.
Your dec page contains:
- Who is insured (named insured and listed drivers)
- When coverage applies (policy period)
- What vehicles are covered
- How much coverage you carry for each type (limits)
- How much you pay out of pocket before coverage kicks in (deductibles)
- What it costs you (premiums broken down by coverage type)
Everything else in your policy -- the dozens of pages of fine print -- defines the terms, conditions, and exclusions. The dec page tells you the bottom line: what you have and what it costs.
Walking Through Your Dec Page Line by Line
Named Insured
This is the primary policyholder -- typically you. It may also list a spouse or other household member. The named insured has rights under the policy that other drivers may not, including the right to make policy changes, file claims, and receive correspondence.
Policy Period
Two dates: the effective date and the expiration date. Your coverage applies only during this window. Most auto policies in NC run for 6 or 12 months before renewal.
Vehicles Covered
Each vehicle on your policy is listed with its year, make, model, and VIN (Vehicle Identification Number). Coverage limits and deductibles may vary by vehicle. If a vehicle is not listed, it is generally not covered (with some exceptions for newly acquired vehicles during a grace period).
Coverage Types and Limits
This is the core of your dec page. Here is what each coverage type means:
Liability Coverage (BI/PD)
Bodily Injury (BI) Liability pays for injuries you cause to other people when you are at fault in an accident. Property Damage (PD) Liability pays for damage you cause to other people's property (their vehicle, fence, mailbox, etc.).
Liability limits are expressed as three numbers: per person / per accident / property damage.
| Format | Per Person BI | Per Accident BI | Property Damage |
|---|---|---|---|
| 50/100/50 | $50,000 | $100,000 | $50,000 |
| 100/300/100 | $100,000 | $300,000 | $100,000 |
| 250/500/250 | $250,000 | $500,000 | $250,000 |
NC minimums (effective October 2025): 50/100/50. This is the legal minimum -- not a recommended level of coverage.
UM/UIM Coverage
Uninsured Motorist (UM) coverage pays your damages when the at-fault driver has no insurance. Underinsured Motorist (UIM) coverage pays when the at-fault driver's insurance is not enough to cover your damages.
UM/UIM is mandatory in North Carolina. Your insurer must offer it at the same limits as your liability coverage. You can reject it or select lower limits, but only by signing a written rejection.
Critical point: Your UM/UIM limits protect you when someone else injures you. Your liability limits protect other people when you injure them. If your UM/UIM is lower than your liability, you are protecting other people better than yourself.
Collision Coverage
Collision pays to repair or replace your vehicle when it is damaged in an accident -- regardless of fault. It comes with a deductible (the amount you pay before coverage kicks in).
Common collision deductibles: $250, $500, $1,000
Higher deductible = lower premium, but more out of pocket when you file a claim. Choose a deductible you can afford to pay on short notice.
Comprehensive Coverage
Comprehensive covers damage to your vehicle from non-collision events: theft, vandalism, hail, flood, fire, falling objects, animal strikes (deer, for example). Like collision, it has a deductible.
Collision and comprehensive together are often called "full coverage" -- though this is an informal term, not a policy classification.
Medical Payments Coverage (MedPay)
MedPay is optional, no-fault coverage that pays your medical bills after an accident regardless of who was at fault. It has no deductible and no copay.
On your dec page, look for "Medical Payments" with a coverage limit -- typically $1,000 to $10,000. Many NC drivers do not realize whether they have MedPay or not. If it does not appear on your dec page, you either declined it or it was never offered (which would be a regulatory violation).
Rental Reimbursement
Rental reimbursement pays for a rental car while your vehicle is being repaired after a covered accident. It appears on your dec page as a daily limit and sometimes a total limit (e.g., "$40/day, $1,200 max").
This is optional and inexpensive -- typically $3 to $10 per month. If it is not on your dec page, you will be paying for a rental out of pocket while your car is in the shop.
Towing and Labor
Towing coverage pays for towing your vehicle to a repair shop after a breakdown or accident. It typically covers $50 to $100 per tow. It is a minor coverage but can save you $200 or more when you need a tow.
Named Driver Exclusions
Some policies list excluded drivers -- people specifically excluded from coverage under the policy. If an excluded driver operates one of your vehicles and causes an accident, the policy provides no coverage for that incident.
Named driver exclusions appear on the dec page and are sometimes used to reduce premiums when a high-risk driver (such as a teenager with a poor driving record) lives in the household. The tradeoff is real: if that person drives your car and causes an accident, you are completely uninsured for the claim.
Red Flags on Your Dec Page
Review your dec page for these warning signs:
1. UM/UIM Lower Than Liability Limits
This is the most common and most dangerous coverage gap. You are protecting others more than yourself. Increase your UM/UIM to match your liability limits at minimum.
2. No MedPay
If MedPay is absent from your dec page, you have no first-party medical coverage after an accident. At $5 to $15 per month, there is no reason to skip it -- especially in a contributory negligence state where your liability claim could be denied entirely.
3. Minimum Liability Limits Only
Carrying only 50/100/50 (or the old 30/60/25 if your policy predates October 2025) leaves you exposed. A single serious accident can produce damages well into six figures. If your liability limits are insufficient, the injured person can pursue your personal assets.
4. No Rental Reimbursement
Without rental reimbursement, you pay for a rental car out of pocket after every accident. This can cost $1,000 or more while your car is in the shop for two to three weeks.
5. High Deductibles You Cannot Afford
A $1,000 or $2,000 collision deductible reduces your premium, but can you actually pay $1,000 to $2,000 out of pocket on short notice? If not, you may be unable to get your car repaired after an accident.
6. Named Driver Exclusions You Forgot About
If you excluded a family member years ago to save money and they are now driving your vehicle regularly, you have a ticking coverage gap.
What to Do Next
Review Your Dec Page Today
Pull it out of your glove box, email, or insurer's website. Spend 10 minutes reading every line. Identify what you have, what you do not have, and what needs to change.
Compare Your Limits to Your Risk
Do your UM/UIM limits match your liability limits? Is your collision deductible affordable? Do you have MedPay and rental reimbursement? If the answer to any of these is no, call your agent.
Request Changes Through Your Agent
Most coverage changes take effect immediately or within a few days. Increasing UM/UIM limits, adding MedPay, or adding rental reimbursement typically costs less than you expect -- often just a few dollars per month.
Review at Every Renewal
Your circumstances change. New vehicles, new drivers, new financial situations. Review your dec page at every renewal and adjust as needed.
Frequently Asked Questions
What is a declarations page on an auto insurance policy?
The declarations page is a one- or two-page summary of your entire auto policy. It lists your name, policy period, vehicles covered, every type of coverage you carry, your coverage limits, your deductibles, and your premium for each coverage. It is the most important single document in your insurance policy.
What do the liability coverage numbers like 50/100/50 mean?
The three numbers represent your bodily injury per person limit, bodily injury per accident limit, and property damage limit. For example, 50/100/50 means $50,000 max per person for bodily injury, $100,000 max per accident for all injured persons combined, and $50,000 max for property damage.
Should my UM/UIM limits match my liability limits?
Yes, at minimum. UM/UIM protects you when the other driver has no insurance or not enough. If your UM/UIM is lower than your liability, you are protecting other people better than yourself. NC law requires that UM/UIM be offered at the same limits as your liability coverage.
How often should I review my declarations page?
Review it at every renewal -- typically every 6 or 12 months. Also review whenever your circumstances change: new vehicle, new driver in the household, change in commute, or change in financial situation. A 10-minute review once a year can prevent a financial catastrophe.