Auto insurance is a policy that provides financial protection for drivers in the event of accidents, theft, or damage to their vehicles. It typically covers a range of situations, including liability for injuries or property damage caused to others, repairs to the insured vehicle, and medical expenses. Some policies may also offer coverage for uninsured motorists, roadside assistance, and rental car costs. Auto insurance is often required by law, and the level of coverage varies based on factors like the driver’s history, the vehicle type, and personal preferences. It helps reduce financial risk and ensures compliance with legal requirements.