Your auto insurance policy is a pages-long legal document that can be confusing. It is filled with legalized terms and restrictions that can make your eyes glaze over. However, in simple terms, an auto insurance policy defines what type of coverage you’ve purchased, how much money it will pay for an auto accident, and under what circumstances. (This information is listed in the terms, conditions, limitations, and exclusions sections of your policy.)Here is a summary of some of the information on your policy.