There are more cars and drivers on the road each year. This can lead to an increased likelihood of a collision. Automobile insurance can be the difference between a minor setback and a large trial. But why do you need insurance and just how much should you buy? Mandated coverage varies based on the state/province but usually includes the following: Liability: This kind of insurance coverage can pay for the damage that you have caused. These damages can include bodily injury, and property damage. Damages from bodily injury can include medical fees, and lost wages. Property damage includes damaged property or loss of property use. If you are sued, liability insurance will pay for your legal fees. Recommended, higher levels of liability insurance can be purchased that cover more than the lower, state-mandated varieties. Personal Injury Protection: Personal injury protection pays for the medical treatment for you or your passengers, regardless of who was responsible for the accident. It is occasionally called no-fault coverage. It can also cover lost wages, service replacement and funeral costs. The minimum amount of this insurance is usually set by the state. Medical Payments: Medical payment coverage can be purchased in non-no-fault states; it pays regardless of who may be responsible. If you purchase this type of coverage, you will receive coverage for reasonable medical or funeral costs. Collision: This pays for damage to your vehicle caused by a collision. Comprehensive: This kind of insurance protection covers any non-collision damages. This may include flood damage, vandalism, and burglary. Uninsured Motorist: This pays for damages when an insured person is injured in an accident caused by another person who does not have insurance. Under-Insured Motorist: There are other drivers who have liability insurance that can't cover all the expenses they are supposed to take care of. Under-insured motorist coverage protects you from those drivers. Emergency road service, car rental, and other types of car insurance can also be purchased. What you pay for auto insurance varies based on the company and will depend on several factors, such as: *Your desired coverage *Your vehicle's make and model * Whether or not you have been in an accident * Your age, sex and marital status * The place where you live Many people think of auto insurance as a necessary evil, but it can save you from a financial crisis. Evaluate your needs, do your research , and with the support of your insurance agent, choose the option that best suits you. State Farm Clermont