Auto insurance is protection. When you enter into a contract with an insurance company, they agree to protect you from financial losses resulting from an accident, in exchange for your payment of a premium.
Your policy will define what losses are covered, and the coverage limits. Auto insurance provides coverage for property, medical expenses, and liability.
Property coverage pays if your vehicle is damaged or stolen. Medical coverage pays for treatment of and rehabilitation for injuries. It may also cover lost wages and funeral expenses. Liability coverage pays if you are at fault in an accident that results in property damage or personal injury.