Car insurance is a contract between a vehicle owner and an insurance company that provides financial protection against potential losses due to accidents, theft, or damage. 

Policies typically cover liability, collision, comprehensive, personal injury, and uninsured motorist protection, though coverage varies widely. Liability insurance covers damages if the insured driver is at fault, while collision insurance pays for repairs or replacement of the insured’s car in an accident. Comprehensive coverage protects against non-collision-related events, like theft or natural disasters.

 Car insurance is legally required in most places and offers drivers peace of mind, safeguarding their finances in unforeseen situations.