By Tahir Abbas, Editor · Last updated 1 November 2026
Car insurance covers the cost of damage, injury and liability that comes with driving. In most places some level of cover is legally required before you can take a car on the road, and the right policy protects your car, other people and your finances after an accident.
This guide explains what car insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What car insurance typically covers
- Liability: injury and property damage you cause to others
- Collision: damage to your own car in an accident, on comprehensive policies
- Comprehensive cover: theft, fire, vandalism, storm and animal damage
- Medical payments or personal injury protection, where included
- Uninsured and underinsured motorist cover, where included
What car insurance typically does not cover
- Wear and tear, mechanical breakdown and routine maintenance
- Driving under the influence or without a valid licence
- Using a private car for commercial purposes without the right cover
- Personal belongings stolen from the car, on many policies
- Damage below your deductible
Who car insurance is for
Every car owner and driver. It is legally required in most jurisdictions, and even where it is not, the cost of an at-fault accident can run to far more than years of premiums.
How to choose and compare car insurance
- Compare like for like: liability limits, deductibles and included extras
- Consider your car’s value: comprehensive cover makes most sense on newer or financed cars
- Check discounts for safe driving, low mileage, security devices and bundling
- Read the small print on courtesy cars, windscreen cover and no-claims protection
Back to Vehicle & Transport Insurance and Insurance.
Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.