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What is car loan amortization?

I want to finance a car, but I've read that I need to look at my car loan amortization. What does this mean?

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Amortization is an accountant’s word for describing how your car loan gets paid off. In an amortizing loan, each payment you make goes partially toward principal and partially toward interest.
Over time, the amount of interest you pay gets less and less as the overall balance of the
car loan
decreases.
An amortization schedule shows how much your interest and principal decrease over time, which is a handy thing to have if you’re interested in how much you’re actually paying over the life of the loan.
While car insurance doesn’t have an amortization schedule, it’s equally as important to have while you’re paying down your car loan. Using the
Jerry
app, you can get the best rate for your car insurance while protecting the investment you’re so diligently paying off.
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