The amount of cars on the road increases each and every year. As this number increases, the possibility of accidents also increases. If you get in a car wreck, the auto insurance you own can make a big difference in how much you have to pay. But why do you need insurance and exactly how much should you purchase? Insurance requirements will differ by state/province, but usually include the following: Liability: This type of insurance coverage will pay for the damage that you have caused. These damages may include personal injury, and property damage. Bodily injury damages can include medical fees, lost wages, and pain and suffering. Property damage includes damaged property or loss of use of property. It can also cover your legal fees if you are sued. Recommended, higher levels of liability insurance can be purchased that take care of more events than the stripped-down, state-mandated insurance. Personal Injury Protection: This is required in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. The minimum amount of personal injury protection is typically set by local government. Medical Payments: This coverage can be purchased in states that are not considered no-fault; it will pay despite who carries responsibility for a crash. It pays for all insured person's reasonable and necessary medical and funeral expenses for bodily injury from an accident. Collision: Damages resulting from a car accident will be paid for under this type of car insurance. Comprehensive: This type of insurance covers any non-collision damages. This could include weather damage, vandalism, and theft. Uninsured Motorist: Too many drivers are ignoring the law by driving without owning the proper amount of auto insurance. This type of coverage will cover you if one of these irresponsible drivers hit you. Under-Insured Motorist: This pays for collision expenses when an insured person is injured in an accident caused by another person who does not have the right amount of insurance to cover the full amount of the damages. Other policies, like car rental and emergency road service, are also available. Your auto insurance payments vary by company and will depend on multiple factors, such as: * Which policies you select * The make and model of the vehicle you own * Your driving record * Your age, gender and marital status * Where you live Many people think of auto insurance as a necessary evil, but it can rescue your finances. Evaluate your needs, research your options, and with the help of your insurance agency, make the decision that best suits you. State Farm Clermont