Each year, more cars hit our roads and freeways. As this number increases, the chances of a car collision will also increase. The difference between a small aggravation and large obstacle can be automobile insurance. But why do you need to own insurance and exactly how much should you buy? Car insurance protects you by paying for injury or damage you inflict on others while driving your car, damage to your car or personal injury or injury to your passengers from an accidents, plus certain other situations, such as robbery. Every state or province mandates auto insurance by law. Choosing to drive without insurance could mean you have to repair or replace a stolen or damaged vehicle or pay the cost of all the damage that you may have caused. Liability: This kind of insurance coverage will pay for the damage that you are responsible for. These damages may include bodily injury, and property damage. Damages from bodily injury can include medical fees, and lost wages. Property damage can refer to damaged property or loss of property use. It also covers your legal fees if you are sued. Recommended, more comprehensive levels of liability insurance can be purchased that take care of more than the stripped-down, state-mandated varieties. Personal Injury Protection: Personal injury protection pays for the medical treatment for you or other people in your car, regardless of who was at fault in the crash. It is required in some states and optional in others. This insurance may also pay for lost earnings, replacement of services and funeral expenses. Local government typically sets minimum amounts. Medical Payments: Medical payment coverage is available in states that are not considered no-fault and will pay no matter who is responsible for the accident. If you buy this type of coverage, you will receive coverage for all types of medical or funeral expenses. Collision: Damages that occur from a car accident will be paid for under this kind of insurance. Comprehensive: Cover your car from damages from other sources when you buy this type of insurance. This includes protection from burglary, vandalism, and fire or flood damage. Uninsured Motorist: If you are in an accident with a driver without insurance, this type of insurance coverage will make sure you are covered. Under-Insured Motorist: Just like uninsured motorist protection, this kind of insurance protects you against drivers without sufficient insurance protection. Other kinds of coverage, including car rental, can also be purchased. What you pay for car insurance varies based on the company and will depend on several factors, including: *Your selected coverage *Your vehicle's make and model * Whether or not you have been in an accident * Your age, sex and marital status * The place where you live Many drivers think they can get by without auto insurance, but it is honestly something you don't want to live without. Evaluate your needs, research your options, and with the help of your insurance agent, choose the option that best suits you. State Farm Clermont