Automobile insurance is designed to help provide financial protection from auto-related damages, loss, or injuries. It is there to protect you, your passengers, other drivers and pedestrians. In addition, it can protect against financial loss in the event of an accident to your car, as well as the property of others. It can provide financial reimbursement if your car is vandalized, damaged by fire, or stolen. Driving without automobile insurance is illegal in almost all states.

Homeowners insurance provides coverage in the event of damage to your property, as well as liability for injuries and damage you cause to other people.