Each year, more automobiles and drivers hit the highways. As this number increases, the chances of a car wreck will also increase. Automobile insurance can be the difference between a small setback and a major trial. But why do you need to own insurance and exactly how much should you buy? Required coverage varies based on the state/province but usually includes the following: Liability: It pays for the expenses you are responsible for in a car accident, including injury and property damage. Bodily injury damages include medical expenses, lost wages, and pain and suffering. Property damage includes damaged property and loss of property use. It also covers your defense and court costs if you are sued. State laws usually require standard amounts of liability insurance, but larger amounts can be purchased and are extremely helpful. Personal Injury Protection: This 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 can also cover lost earnings, replacement of services and funeral costs. The minimum amount of this insurance is usually set by the state. Medical Payments: Medical payment coverage is available in non-no-fault states and will pay regardless of who is responsible for an accident. If this policy has been purchased, the insured person will receive payment for necessary medical and funeral costs. Collision: Damages resulting from a car accident will be paid for under this kind of insurance. Comprehensive: This kind of insurance takes care of all damages not caused by a collision. This may include fire and wind damage, vandalism, and robbery. Uninsured Motorist: Too many drivers are ignoring the law by driving a car without having the right amount of car insurance. This type of coverage will cover you if you are in a collision with one of these irresponsible drivers. Under-Insured Motorist: Many drivers have liability insurance that might not be able to cover all the expenses they are supposed to take care of. Under-insured motorist coverage covers you in accidents involving those drivers. Emergency road service, car rental, and other types of coverage can also be purchased. Your auto insurance payments vary by company and will depend on multiple factors, including: * What coverage you choose * The type of the car you drive * Your driving record * Your age, sex and marital status * The place where you live Many people consider auto insurance to be a necessary evil, but it can save you from a financial dilemma. Evaluate your needs, do your research , and with the guidance of your insurance agent, choose the option that fits you best. State Farm Clermont