How do I correctly Crop my Video

I am guessing you do not want to crop your video (which means cutting off the edges of your video, The black bars are not part of your video but rather empty space within the frame) but rather your video fits the frame without the black bars?

If so:

You need to set up a sequence that matches your footage.

Most simple way is to right click on a clip in the Project Window and hit New Sequence from clip.

If its correct you can go and edit this sequence and delete the old one (sequence 02)

Twirl down Motion and you will see Crop options at the bottom of Motion (if you have latest version of Premiere Pro). If you have older versions, then there is the Crop effect.