Auto insurance provides coverage against various risks associated with owning and driving a vehicle. It typically includes liability coverage, collision coverage, and comprehensive coverage. Liability coverage pays for damages and injuries caused to other people and their property in the event of an accident. Collision coverage pays for damages to your car if it collides with another vehicle or object. Comprehensive coverage pays for damages to your car caused by events such as theft, natural disasters, and vandalism.
Auto insurance policies also come with deductibles, which are the amount you have to pay out of pocket before the insurance company covers the rest. The higher your deductible, the lower your premium, but the more you will have to pay if an accident occurs.