Auto coverage refers to insurance that covers damages or losses to an automobile. This type of insurance typically includes collision, comprehensive and liability coverages which protect drivers from financial loss in case of accidents, theft or damage caused by their vehicle. Auto coverage can be purchased separately or as part of a package with other types of insurance such as homeowners or renters insurance. The specifics of auto coverage vary depending on the policy and the state where it is issued but generally speaking, it provides protection for drivers in case of accidents, vandalism, theft, fire or weather-related damages to their vehicle.