Car insurance — we all know we need it. But beyond that, many of us still ask ourselves, “What auto insurance should I get?” The key is knowing what deductibles and coverages are and how they affect auto insurance. So without further ado, here’s a primer.

What is a deductible?

Put simply, a deductible is the amount that you agree to pay up front when you make an insurance claim, while the insurance company pays the rest up to your coverage limit.

When choosing your car insurance deductible, think about how much you’re willing to pay out of pocket if you need to make a claim. Weigh that against the fact that higher deductibles generally mean lower premiums. It really comes down to what makes you the most comfortable.

Auto insurance policies generally consist of several kinds of coverages. Because insurance laws vary from state to state, the following information is here to give you a broad overview of typical coverages, and it isn’t a statement of contract. In most cases, if you file a claim, you will first pay the deductible amount, and then your insurance will cover the additional amount.