Each year, more cars and drivers hit America's roads. As this number increases, the chances of a car accident will also go up. The difference between a little bother and large obstacle can be the car insurance you own. But why do you need insurance and exactly how much should you purchase? Insurance requirements vary by state/province, but usually include the following: Liability: It pays for damages due to personal injury and damage to property that you are responsible for. It also covers your legal fees if you are sued. State laws usually require minimum amounts, but higher amounts can be purchased and are usually recommended. Personal Injury Protection: Personal injury protection pays for all medical treatment for you or other people in your car, regardless of who was responsible for the collision. It is commonly referred to as no-fault coverage. This insurance may also pay for lost earnings, replacement of services and funeral expenses. State government usually sets minimum amounts. Medical Payments: This coverage can be purchased in non-no-fault states; it pays despite who may be responsible. If this policy has been bought, the insured person will receive coverage for all types of medical or funeral expenses. Collision: Pays for damages to your car caused by an accident. Comprehensive: Applies if your car is stolen or damaged by something other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: Too many drivers are breaking the law by driving a car without having the proper amount of auto insurance. This type of coverage will cover you if you are in an accident with one of these drivers. Under-Insured Motorist: Just like uninsured motorist protection, this kind of insurance covers you from people driving without sufficient insurance protection. Other types of car insurance, such as emergency road service, are also available. State Farm Clermont