Auto insurers price their policies based on a number of factors. Sometimes these cost factors go up, and sometimes they go down. In most states, costs are currently rising. Your actions, as a policyholder, can affect what you pay, too. For instance, if you add another car, or a teenaged driver to your policy, your costs will increase. Alternatively, your costs will decrease if you drop either a car or a driver from your policy.

Auto insurance premiums are calculated using a many factors—and some insurers give more weight to some factors than others. The cost of an auto insurance policy is generally determined by the amount of coverage, types of coverage chosen and other factors.

Don’t be intimidated by specialized insurance language. Below you’ll find definitions of some of the most common terms used when dealing with auto insurance.

Adjuster

An insurance company employee or contractor who reviews the damages and injuries caused by an accident and okays claims payments.

Bodily injury liability

Usually mandated by state law, this insurance provision covers costs associated with injuries and death that you or another driver causes while driving your car.

Once you have a clear picture of how you use your car and your priorities, you’re ready to shop for insurance. Generally, it’s a good idea to compare policies from at least three different insurers.

You’ll want to consider fundamental factors such as coverage and price, but it’s also worth evaluating prospective insurers as well. The following are the most important factors to consider.

The vehicle you own, your personal priorities and your budget all factor into your unique auto insurance needs. Before comparing policies and insurers, evaluate how you use your car and what risks you face to figure out what options make the best sense for you.

The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.

But to make the best decisions about purchasing other types of auto insurance coverage you might need, you’ll want to understand what’s covered, what’s not covered and what’s optional. In addition to understanding types of coverage, you’ll also want to consider coverage amounts.

Despite the legal requirements in 49 states, many drivers in the U.S. remain uninsured. Don't risk your financial health—make sure you're insured, and learn how to protect yourself in the event of an accident with an uninsured motorist.

The facts about flooded cars

Like other natural disasters, floods can create enormous damage to properties and vehicles. Flood vehicles offer a tempting opportunity for criminals to defraud unsuspecting consumers.

A classic, custom, collectible or antique car requires insurance that reflects your vehicle’s uniqueness and value. If you own—or are thinking of owning—a special set of wheels, find out about the kind of policy you need.

After a car accident your insurance company may recommend you use a direct repair program (DRP) and offer the option of using generic auto parts for the repair. It's important to understand these options and their insurance ramifications.