There are more drivers hitting the road every year. With so many vehicles on the road, accidents will happen. Car insurance can be the difference between a small inconvenience and a large hassle. But why do you need insurance and just how much do you need? Coverage requirements vary by state/province, but usually include the following: Liability: This type of insurance coverage will pay for the damage that you are responsible for. These damages may include bodily injury, and property damage. It also covers your legal fees if you are sued. Recommended, more comprehensive levels of insurance can be purchased that take care of more events than the lower, state-mandated varieties. Personal Injury Protection: Personal injury insurance is mandated 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. This insurance may also cover lost earnings, service replacement and funeral costs. The minimum amount of personal injury protection is usually set by local government. Medical Payments: Medical payment coverage can be purchased in states that are not considered no-fault; it pays despite who carries responsibility for a crash. All reasonable medical or funeral expenses will be paid for under this type of coverage. Collision: Damages resulting from a collision will be paid for under this type of insurance. Comprehensive: Cover your vehicle from all non-collision damages when you buy this type of insurance. This includes protection from burglary, vandalism, and weather damage. Uninsured Motorist: Pays for repair and replacement costs when someone with insurance is in a crash caused by another person who does not have liability coverage. Under-Insured Motorist: There are other drivers who have liability insurance that might not be able to cover all the expenses they are responsible for. This type of insurance protects you in accidents involving those drivers. Other policies, such as car rental, are also available. What you pay for car insurance varies based on the company and will depend on multiple factors, including: *Your desired coverage *Your vehicle's make and model * Your driving record * Your age, sex and marital status * Where you live Many people think of car insurance as a necessary evil, but it can save you from a financial dilemma. Evaluate your needs, research your options, and with the guidance of your insurance agency, make the decision that best suits you. State Farm Clermont