Let's first examine what a catalytic converter is and why it is so valuable before discussing insurance coverage. A catalytic converter is a component of an automobile's exhaust system. Its main job is to change dangerous pollutants like carbon monoxide and nitrogen oxides from exhaust gases into less dangerous ones like carbon dioxide and water vapor. This is accomplished via a chemical reaction occurring on a surface covered in precious metals like palladium, rhodium, and platinum. This brings down pollution and is overall a great thing for the environment. Cars are no longer allowed to be used without catalytic converters.