Start Here: Insurance Basics

Insurance can feel confusing, but a few ideas cover most of it. This page walks through those ideas and points you to the guides that go deeper.

1. What insurance is

Insurance is a contract. You pay a premium, and the insurer agrees to pay for certain covered losses described in the policy. What is covered, what is excluded and how much you pay out of pocket all depend on the policy wording.

2. The main types

• Auto insurance: financial protection connected to driving and owning a vehicle. Start with how claims work and what is not covered.
• Home insurance: covers a home and belongings against listed events. See water heaters or premiums after a claim.
• Life insurance: pays a benefit to beneficiaries. See net cash value.
• Health insurance: helps pay for medical care. See when coverage starts at a new job.
• Renters insurance: see whether it is mandatory.

3. What affects what you pay

Prices depend on the type and amount of coverage, your deductible, where you live and details about what is being insured. Our guide to what factors determine your premium goes through them.

4. Before you buy or file a claim

• Read the declarations page and exclusions in your policy.
• Compare the same coverage amounts and deductibles when comparing prices.
• Keep records and photos, and ask your insurer what documents it needs.

Next steps

• Glossary of key terms
• Types of insurance at a glance
• Insurance FAQs
• Calculators and tools

This page is general information only. It is not insurance, legal, tax or financial advice. Rules, coverage and prices vary by state, insurer and policy, so check your own policy documents and talk to a licensed agent or your insurer before making decisions.