Emma Gutierrez: Hello, I am Emma Gutierrez with Wells Fargo Company. Today we are learning about the basics of auto insurance coverage and how your rates are determined. Auto insurance rates are generally based on a number of factors, including location of the driver's residents, driver characteristics and type of vehicle. Your driving record plays an important role in your rates so it's very important to be a safe driver at all the times. You may be eligible for large discount on your policy if you have a clean driving record with no traffic violation for the past three years. Some companies look back as far as five years, even one violation can increase your premium depending on the laws in your state. The type of car you drive can also have an impact on your insurance rate. You may pay a higher rate if you drive a sports car, another type of vehicle with a powerful engine or a very expensive car. You can often get a lower rate for Hybrid or Low- Profile car if you are not quite ready for Hybrid your insurance will be lower if you drive a Low-Profile car. A Low-Profile car is one that's not popular with auto thieves. Auto Insurance policies have many types of coverage, liability, collision, comprehensive, medical payments and uninsured motorist coverage. Collision insurance covers the insured vehicles damages in the event of an accident. It's one of the most costly features of a policy. Because of the cost, some car owners wave this coverage entirely, depending on the value of their vehicle. If the vehicle is expensive this coverage is important. Liability coverage is the cornerstone of any auto insurance policy and is required in most states. Liability insurance pays for injuries and property damage if you are found at fault in an accident; you will always have coverage options to provide for medical payments for you and your passengers. There are also types of coverage called Personal Injury Protection or PIP and Uninsured Motorist Coverage which protects you in the event of an accident where the at fault driver isn't insured or lacks adequate coverage. As you can see there are many types of insurance coverage to consider and many ways to save on the costs without giving up the protection you need.