There are two parts to car insurance. The most obvious is the part that relates to the car itself. Comprehensive coverage will reimburse losses due to dangers such as theft or vandalism. Collision coverage will pay to repair the car in the event of an accident. Such coverage is typically mandated by the bank or the company leasing the vehicle. In some states, additional medical, car rental and other coverages are offered.
The second part of auto insurance is the liability section. This is the section that covers the financial aspect that results from you injuring someone else in an accident. Most states require that drivers have at least some liability coverage.