We see more and more drivers on the road every year. As this number goes up, the chances of a car collision will also increase. Car insurance can make the difference between a small setback and a large hassle. But why is insurance required by law and just how much should you buy? Mandated coverage varies based on the state/province but usually includes the following: Liability: It pays for damages due to personal injury and property damage to others that you are responsible for. Damages from bodily injury include medical expenses, lost wages, and pain and suffering. Property damage can refer to damaged property and loss of property use. If you are in legal trouble, this type of insurance can pay for your legal fees. Recommended, higher levels of liability insurance can be purchased that cover more events than the lower, state-mandated insurance. Personal Injury Protection: Personal injury insurance is required 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 wages, service replacement and funeral expenses. The minimum amount of this insurance is typically set by local government. Medical Payments: This type of coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. If you purchase this type of coverage, you will receive payment for all types of medical or funeral expenses. Collision: Pays for damage to your car caused by an accident. Comprehensive: Cover your car from damages from other sources by purchasing this type of insurance. This may include protection from robbery, vandalism, and weather damage. Uninsured Motorist: Pays for repair and replacement costs when an insured person is in a crash caused by a driver who does not have liability insurance or by a hit-and-run driver. Under-Insured Motorist: Similar to uninsured coverage, this kind of insurance protects you against drivers without enough insurance coverage. Other policies, like car rental and emergency road service, are also available. Your auto insurance payments vary by company and will depend on multiple factors, such as: *Your selected coverage *Your vehicle's make and model * Whether or not you have been in an accident * Your age, gender and marital status * Where you live Don't wait around to buy car insurance; you should never drive a car without it. Evaluate your needs, do your research , and with the guidance of your insurance agent, make the decision that fits you best. State Farm Clermont