Auto Insurance For Dummies ❲PRO — EDITION❳

Pays to repair your car if you hit something (another car, a tree, a guardrail).

At its core, auto insurance is a contract between you and an insurance company. You pay a fee (the ), and in exchange, the company pays for specific financial losses during an accident or theft. It exists for two reasons:

Rule of Thumb: If you choose a , your monthly premium goes down. If you want a lower deductible , you will pay a higher monthly premium . 4. How Companies Set Your Price auto insurance for dummies

Living in a high-crime or high-traffic area raises rates.

Understanding insurance is easier when you split it into three categories: A. Liability (The "Other Guy" Coverage) Pays to repair your car if you hit

Insurers look at "risk." The more likely you are to crash, the more you pay. Key factors include: Tickets and accidents make you "risky."

The amount you pay out-of-pocket before the insurance company kicks in. It exists for two reasons: Rule of Thumb:

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