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If you park your car on your parent's property, and never drive it anywhere, you might not need to have any insurance.
But if you are going to take that car out on the public highways, you need all sorts of different types of insurance to pay for medical expenses if anyone hurt in an accident, pay for repairs if any damage from accident, get another car if it is stolen, protect your assets (house, car bank accounts) from beign drained by law suits, and also keep you out of jail.
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How does the whole car insurance thing work?
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Do you have a question? I'm not really sure what you are asking. Many credit cards include secondary coverage when you rent a car (some include primary). If you have a car at home, then you will be covered to some extent for liability when you are renting. But the laws differ by country. You can buy a collision-damage waiver (which is NOT insurance, by the way) with most car rentals, and some countries even require you to buy certain types of waivers and/or insurance (such as Jamaica, Italy, and Australia).
Doug: "Do you have a question? I'm not really sure what you are asking" - maybe take a look at the OPs other 2 posts in the Lounge and here. I don't think he is asking anything. He is a new member and apparently likes to post "useful" nuggets of information.