Car insurance protects you from financial liability in incidents involving your vehicle. It has two major benefits. First, it can help save you from costs involved with bodily injury (medical costs). Second, it covers property damage to both you and your property, and other people involved in the accident if you’re at fault. Car insurance is required in most states and it is illegal to operate a car without it. In general, car insurance covers damage, vandalism, and theft of your vehicle. But what any specific auto insurance policy will cover depends on the coverage type(s) you have.