> For the complete documentation index, see [llms.txt](https://docs.loopit.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.loopit.co/assets/categories/understanding-categories-and-subcategories.md).

# Understanding Categories and Subcategories

## **What Are Categories Used For?**

Categories in Loopit help organise vehicles for customer-facing use cases, such as:

* Allowing customers to book based on vehicle types (e.g., small car, SUV).
* Simplifying backend management of fleets.

## **Key Features**

1. **Booking Rules:** Categories define booking parameters, such as selecting vehicles by VIN for exclusive categories like “Supercars.”
2. **Customer Presentation:** Align categories with business needs (e.g., rentals, subscriptions) to ensure clarity and ease of booking.
3. **Fleet Organisation:** Manage assets based on category hierarchy for better inventory visibility.

## **Step-by-Step Guide**

1. Navigate to **Settings > Categories**.
2. Assign vehicles to a category.
3. Configure booking rules:
   * Define whether customers book by category or specific VIN.
   * Set mandatory fields such as insurance, payment method, or age restrictions.

[Watch the video to understand more about how categories work.](https://www.loom.com/share/000807f4d64747e6a383157b04cb13ad?sid=a1fef59c-7930-4e01-9975-1a2d638e3bcb)