How auto insurance works: what is covered If you are looking at buying auto insurance, you may have a lot of questions. There are many different types of coverage available, each with its own set of advantages and disadvantages. Car insurance 101 Trying to navigate the world of auto insurance can be difficult, particularly when it comes to fully understand your coverage options. Each state has its own laws and regulations regarding auto insurance requirements. Car insurance is a type of insurance that covers the cost of damage to or loss of the insured property. It is designed to cover physical damage and/or bodily injury resulting from traffic accidents, natural disasters, and other potentially damaging events. The coverage can also include damage to one's own car is stolen or vandalized. When you purchase car insurance, you're buying protection against bad drivers. You can file a claim after an accident and receive money to cover damages, medical bills, and lost time at wor