Insurance costs vary based on the car, your location, even your credit score. Be sure to evaluate insurance costs before you buy.

This chapter walks you through the complex business of auto insurance. The common terms — such as “Uninsured Motorist,” “Bodily Injury,” “Comprehensive” — are explained, and the relationship between your credit score and the cost of your insurance is examined. Finally, we show you how you can lower your insurance costs by taking advantage of every discount.

What can you expect to learn from this chapter:

  • ABCs of auto insurance

    The six basic parts of an auto insurance policy are explained.

  • Lowering insurance costs

    Being a smart shopper, maintaining a good credit rating, installing a car alarm, even getting married can save you money. Check out all the discounts.

  • What’s no-fault insurance?

    Some states are “no fault” and others are “tort” or “choice.” Find out what all this means for your car insurance.

  • Credit score & insurance costs

    Didn’t know your credit score could influence your insurance rate? We explain how insurance carriers use your credit score.

  • Insurance terms and definitions

    Your auto insurance policy is probably printed in tiny type, but you should still understand every part of it. Here’s a “big print” guide to a typical policy.