Auto insurance is essential financial protection for you and your car. It covers the costs if you cause a car accident that injures someone else or damages their property. It can also cover damage to your own car, either from a collision or another type of danger, like hail, fire, falling objects and theft. Car insurance can even pay for towing if you’re stranded by the side of the road, or for a rental car if yours is in the shop after an accident.
At least a minimum amount of car insurance is legally required in almost every state, but most drivers need more coverage than just their state’s requirements.