There are more cars on the road every year. As this number increases, the chances of a car accident will also go up. If you get in a car accident, the auto insurance you own can make a big difference in the experience you have. 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: Personal injury and property damage that you have caused will be paid for under this type of insurance. Damages from bodily injury include medical fees, lost wages, and pain and suffering. Property damage can refer to damaged property or loss of use of property. If you are in legal trouble, it also pays your defense and court costs. Recommended, more comprehensive levels of liability insurance are available that take care of more events than the stripped-down, state-mandated insurance. 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. State government usually sets minimum amounts. Medical Payments: Medical payment coverage is available in states that are not considered no-fault and will pay regardless of who is responsible for an accident. If you buy this type of coverage, you will receive coverage for all types of medical and funeral expenses. Collision: This pays for damages to your car caused by a collision. Comprehensive: This type of insurance covers any non-collision damages. This may include hail damage, vandalism, and theft. Uninsured Motorist: This pays for repair and replacement costs when an insured person is in an accident caused by a driver who does not have liability coverage. Under-Insured Motorist: This pays for collision expenses when a driver with insurance is in an accident caused by a driver who does not have enough liability insurance to pay for the full amount of the damages. Other kinds of coverage, including car rental, are also available. State Farm Clermont