You start off in a basic Sidewinder. It's a great little ship and versatile enough for you to "try out" different career paths but is ultimately limited is excelling in any area due to size. But think of it as an introduction to the game. Use it to learn the mechanics. What not to do etc. Get a feel for the direction you want to take.
Every time you blow up your Sidewinder (not that you will!) you get another free of charge. So feel free to make any mistakes then as you gain more confidence you can start to gain some credits from trading, exploration, bounty hunting, bulletin board missions or (heaven forbid) pirating!
Once you get enough CR to buy your first 'real' ship then the game changes a little. You don't get that ship back unless you can cover the insurance with your remaining balance. Remember this golden rule now and forever. On your RH panel, on the first screen it details the buy-back cost. Never fly your ship if you can't afford it. It's also best if you have more than 2 or 3 times the money in your bank in case you have two accidents in quick succession. If you do blow your prize ship and you don't have the cash you are back in your free Sidewinder.
And that is basically how death works.
If you're an old-timer, like myself, then you might be interested in Mobius. It's a private group which focuses on PvE play rather than PvP. Forgive me if I am explaining too much but if you play in Open mode you will see everyone and effectively be in a PvP environment where anything goes. (PvP player vs player). As a new player you could potentially be the recipient of a lot of unwarranted grief. The Mobius group wanted to offer the same experience as meeting other real players in the galaxy but in a more friendly PvE (player vs environment) setting. So you 'should' not suffer any grief but still attain the benefits of meeting real people. There's also a solo mode if you are not interested in meeting anyone else.
Also, if you have any questions starting out feel free to ask in the newcomers forum, plenty of helpful people here.
Hope you jump in soon commander and remember, fly safe!