In essence, auto insurance helps to cover some legal fees. These lawsuits can work in 2 ways- either with you being sued or you suing someone else.
If a third party has incurred bodily injuries and property damage from an accident caused by you, they may file a lawsuit against you to cover their medical bills and repair expenses. In such circumstances, your insurer will hire a lawyer to defend your case and cover the legal fees.
If you are hurt in a car accident caused by another driver, you might want to file a lawsuit to compensate for your damages. However, in this situation, you will need to hire and pay for your own lawyer and any other associated expenses.