There are more drivers on the road each year. This can lead to an increased likelihood of a car accident. Automobile insurance can be the difference between a small setback and a major hassle. But why do you need insurance and just how much do you need? Coverage requirements will differ by state/province, but typically include the following: Liability: Personal injury and property damage that you have caused will be covered under liability insurance. It can also cover your legal fees if you are sued. Local laws typically mandate standard amounts of liability insurance, but higher amounts are available and 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. This insurance may also pay for lost wages, replacement of services and funeral costs. The minimum amount of personal injury protection is usually set by the state. Medical Payments: Medical payment coverage can be purchased in non-no-fault states; it pays despite who carries responsibility for an accident. If this type of coverage has been purchased, the insured person will receive coverage for reasonable medical and funeral costs. Collision: Damages resulting from a car accident will be paid for under this type of car insurance. Comprehensive: Applies if your car is stolen or damaged by causes other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: This pays for damages when an insured person is in a crash caused by another person who does not have insurance. Under-Insured Motorist: Similar to uninsured coverage, this type of insurance protects you against people driving without enough insurance protection. Emergency road service, car rental, and other varieties of car insurance can also be purchased. State Farm Agent Clermont