You will see more and more drivers on the road every year. This could lead to a higher possibility of a collision. The difference between a little aggravation and major pain can be your car insurance. But why is insurance necessary and just how much should you buy? Insurance requirements will differ by state/province, but typically include the following: Liability: This kind of insurance coverage will pay for the damage that you have caused. These damages can include bodily injury, and property damage. Bodily injury damages can include medical fees, lost wages, and pain and suffering. Property damage includes damaged property and loss of use of property. It can also cover your legal fees if you are sued. Local laws typically require minimum amounts, but higher amounts are available and extremely helpful. 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. Local government typically sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. If this type of coverage has been purchased, the insured person will receive coverage for all types of medical or funeral costs. Collision: Pays for damage to your car caused by a collision. Comprehensive: This kind of insurance protection takes care of all damages not caused by a collision. This may include fire and wind damage, vandalism, and theft. Uninsured Motorist: If you are in an accident with an uninsured driver, this type of insurance coverage will protect you. Under-Insured Motorist: There are other drivers who have liability insurance that can't pay for all the expenses they are responsible for. Under-insured motorist coverage protects you from those drivers. Other types of coverage, like emergency road service, are also available. State Farm Clermont