Every year, more cars and drivers are on the highways. With the increasing number of vehicles on the road, crashes can happen. Automobile insurance can be the difference between a minor setback and a major trial. But why is insurance required by law and just how much do you need? Required coverage varies based on the state/province but usually includes the following: Liability: Bodily injury and property damage that you are responsible for will be paid for under liability insurance. Damages from bodily injury can include medical expenses, lost wages, and pain and suffering. Property damage can refer to car repair costs or loss of property use. It also covers your defense and court costs if you are sued. Local laws usually mandate standard amounts of liability insurance, but higher amounts can be purchased and are very beneficial. Personal Injury Protection: Personal injury insurance is mandated in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. The minimum amount of this insurance is typically set by local government. Medical Payments: This coverage is available in states that are not considered no-fault; it pays regardless of who may have been at fault. All reasonable medical or funeral expenses will be paid for under this type of policy. Collision: Damages resulting from a car accident will be paid for under this type of insurance. Comprehensive: Applies if your vehicle is stolen or damaged by something other than a collision, including weather damage or vandalism. Uninsured Motorist: Many drivers are ignoring the law by driving a car without having the proper amount of car insurance. This insurance will cover you if one of these irresponsible drivers hit you. Under-Insured Motorist: Many drivers have liability insurance that might not be able to pay for all the expenses they are responsible for. This type of insurance covers you in accidents involving those drivers. Other policies, like car rental, are also available. State Farm Clermont