What exactly does your policy cover?

What exactly does your policy cover?
It depends on your plan.
In most, if not all states you must have liability insurance. Liability only is the cheapest plan because it will only cover damages to a vehicle you hit, as well as personal injury you cause. It normally has a limit (like $100,000 max coverage) leaving you personally responsible for damages above that. Comprehensive can cover not just damage you are responsible for, but also auto theft as well as damage to your car if you are at fault.