Auto insurance, or automobile insurance, is insurance offered for cars, SUVs, vans, pick-up trucks and other light vehicles. Most states in the United States and provinces in Canada require motor vehicles to be insured to some degree. What auto insurance coverage does is it protects against any losses and liabilities that may arise during a traffic accident.

There are different types of auto insurance and they can cover a variety of parties, including the insured driver, the vehicle itself, a third party and in some cases, passengers riding in the insured car or vehicle. The fee charged for auto insurance--called a premium--can depend on a number of factors including the value of the car being insured; the likelihood of accidents in the geographical location of the insured driver; the insured driver's record; any deductibles (a fixed amount of money the insured must pay before insurance begins to cover an event); and more.

A few common types of auto insurance include liability (for both property damage and bodily injury) which covers anything the insured driver may be responsible for to other parties; collision, which covers damage to the insured auto in the event of an accident; comprehensive, which covers non-collision damage to the insured car (such as theft, vandalism or fire, for example); uninsured or underinsured coverage, which would protect the insured in the event another party at fault in an accident does not have enough insurance (or has no auto insurance at all); and rental coverage, which covers the cost of a rental car while the insured's car is being repaired.