Every year, more cars and drivers are on the roads. This could lead to a higher possibility of a car accident. Car insurance can be the difference between a small setback and a major trial. So how do you know what insurance you need and the quantity you should purchase? Coverage requirements vary by state/province, but typically include the following: Liability: Personal injury and property damage that you have caused will be covered under liability insurance. Bodily injury damages include medical expenses, lost wages, and pain and suffering. Property damage includes damaged property or loss of property use. It also covers your defense and court costs if you are sued. State laws typically mandate minimum amounts, but higher amounts can be purchased and are very beneficial. Personal Injury Protection: This type of insurance pays for hospital bills and other medical treatment for you and other people in your car, regardless of who was responsible for the crash. It is sometimes referred to as no-fault coverage. This insurance can also pay for lost earnings, replacement of services and funeral expenses. State government typically sets minimum amounts. Medical Payments: This type of coverage can be purchased in states that are not considered no-fault and will pay no matter who is responsible for the accident. It pays for all insured person's necessary medical and funeral expenses for bodily injury from an accident. Collision: This pays for damage to your car caused by an accident. Comprehensive: Protect your car from damages from other sources when you buy this type of coverage. This can include protection from robbery, vandalism, and fire or flood damage. Uninsured Motorist: This pays for repair and replacement costs when someone with insurance is injured in an accident caused by another person who does not have insurance. Under-Insured Motorist: This pays for damages when an insured person is injured in an accident caused by another person who does not have enough liability insurance to pay for the total amount of the damages. Other types of coverage, such as car rental, are also available. State Farm Clermont