Auto insurance is one of the most common types of personal insurance. Most states will require that you have some type of car insurance to drive legally in that state. Most auto insurance policies will contain liability insurance, which will pay for damages that you are responsible in case of an accident. These damages may include bodily injury and/or property damage.
You can also protect your own car in case of an accident by purchasing a policy that includes physical damage. Physical damage coverage may include collision coverage and comprehensive coverage, which would pay for damages to your vehicle. Collision coverage will pay as a result of your auto colliding with another car or object. Comprehensive coverage would pay for damages to your car from mostly all other causes, such as fire, theft, vandalism, and severe weather. You are not require by law to carry either of these coverages.