Auto insurance is an agreement between you and the insurance company that protects you from any financial loss during an auto accident or theft.
Also, It can vary from state to state on the requirements. Florida requires you to have coverage on your vehicle or you can't register it.
Basic coverages you are provided with:
Bodily injuries liability -
which covers costs associated with injuries or death that you or another driver causes while driving your car.
Property damage liability -
which reimburses others for damage that you or another driver operating your car causes to another vehicle
or other property, such as a fence, building or utility pole.
In addition, many states require that you carry:
Medical or personal injury protection (PIP) -
which provides reimbursement for medical expenses for injuries to you or your
passengers. It will also cover lost wages and other related expenses.
Uninsured Motorist Coverage -
reimburses you when an accident is caused by a driver who does not have auto insurance—or in the case
of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate
coverage to pay the costs of a serious accident.