Car insurance is a type of insurance policy that protects vehicle owners from financial loss in the event of an accident, theft, or damage. It typically covers costs related to repairs, medical expenses, and liability for injuries or damages to others. Different types of coverage include liability, collision, and comprehensive insurance, each serving a specific purpose. Having car insurance is often a legal requirement in many places, ensuring that drivers can cover potential damages. Premiums are determined by factors such as the driver's history, the type of vehicle, and the level of coverage chosen.