Auto insurance covers only the vehicle itself--not items that were in the vehicle.
While Al constantly refers to his Dodge, it is in fact a Plymouth Duster, a variant of the Dodge Demon. If you look closely in episodes with his car, you will notice a Duster emblem on the fenders.
In at least one shot of Al "driving" the Town Car, the gear selector can be seen above the dash, indicating that the car is actually in PARK.