The main components of an auto insurance policy are the premium, deductible, coverages, and coverage amounts. Your premium is the amount paid to the auto insurance company for coverage. A deductible is an out-of-pocket fee paid by the insured in exchange for the auto insurance company paying for the repair or replacement of the insured’s damaged vehicle. Coverage types are the types of insurance coverage you agree to pay for, such as liability, comprehensive, and collision. Coverage amounts are the amounts your auto insurance company agrees to pay for accident-related expenses. Having a better understanding of your auto insurance policy allows you to choose the right coverage for you.