Automobile Insurance protects your personal vehicle from damage caused by fire, lightning, vandalism, collision, flood and more. It also protects the owner of the automobile from bodily injury and property damage liability losses due to the negligence of the owner or operator of the automobile or a non-owned vehicle (such as a rental car). Each state addresses mandatory requirements, and insureds have the option to purchase additional coverage protections.

For example, if you crash into someone else’s car and damage the bumper, your auto insurance would cover the cost of the damages to both cars.