Vehicle insurance facts for kids

Kids Encyclopedia Facts
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Vehicle insurance (also called auto insurance or car insurance) is a kind of insurance that protects people if they have a car accident. Somebody with vehicle insurance would not have to pay the entire cost of damage a car accident causes. In many places, it is against the law to drive without vehicle insurance.

Premium

Somebody with vehicle insurance would pay what is called a premium (perhaps every month). The insurance company would decide how big the premium is, and might consider several factors. These include some of the following:

  • Age
  • Type of car
  • Type of job
  • Gender
  • Home
  • History of insurance
  • Past accidents

When you pay a premium, the insurance company agrees to pay your losses as outlined in your policy. Depending on different factors, the insurance company may not pay all or any of your losses.

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Vehicle insurance Facts for Kids. Kiddle Encyclopedia.