Auto insurance is a type of insurance policy that protects drivers against financial loss in the event of an accident or theft. It typically covers damages to the vehicle, medical expenses for injuries, and liability for damages caused to other people or property. Policies can vary widely in terms of coverage options and costs, allowing drivers to choose the level of protection that best suits their needs. In many places, having auto insurance is a legal requirement. Different types of coverage include liability, collision, and comprehensive insurance. Understanding these options can help drivers make informed decisions and ensure they are adequately protected on the road.