Every year, more automobiles and drivers travel America's roads. As this number increases, the possibility of accidents also increases. The difference between a small bother and major pain can be your insurance. But why do you need to own insurance and exactly how much should you buy? Insurance requirements vary by state/province, but usually include the following: Liability: Pays for damages due to bodily injury and damage to property that you have caused. 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 sued, it also pays your defense and court costs. Recommended, higher levels of liability insurance are available that cover more than the lower, state-mandated varieties. 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. This insurance may also pay for lost earnings, service replacement and funeral expenses. The minimum amount of this insurance is usually set by the state. Medical Payments: This coverage can be purchased in states that are not considered no-fault; it will pay regardless of who carries responsibility for a collision. If you buy this type of coverage, you will receive coverage for necessary medical or funeral expenses. Collision: Damages that occur from a car accident will be paid for under this kind of insurance. Comprehensive: This applies if your car is stolen or damaged by something other than a collision, including weather damage or vandalism. Uninsured Motorist: If you are in an accident with an uninsured driver, this type of insurance will protect you. Under-Insured Motorist: There are other drivers who have liability insurance that might not be able to pay for all the expenses they are responsible for. Under-insured motorist coverage covers you in accidents involving those drivers. Other policies, such as car rental, are also available. State Farm Clermont