Every year, more cars and drivers are on the highways. This can lead to an increased likelihood of a collision. The difference between a small bother and major pain can be the car insurance you have purchased. So how do you know what insurance you need and the quantity you should purchase? Required coverage varies based on the state/province but usually includes the following: Liability: Bodily injury and property damage that you have caused will be paid for under liability insurance. If you are in legal trouble, liability insurance can pay for your defense and court costs. Recommended, higher levels of liability insurance can be purchased that take care of more than the stripped-down, state-mandated insurance. Personal Injury Protection: This type of insurance pays for hospital bills and other medical treatment for you or your passengers, no matter who was responsible for the crash. It is occasionally referred to as no-fault coverage. It can also pay for lost earnings, replacement of services and funeral costs. The minimum amount of this insurance is typically set by local government. Medical Payments: Medical payment coverage can be purchased in non-no-fault states; it pays regardless of who carries responsibility for an accident. All reasonable medical or funeral expenses will be covered under this type of coverage. Collision: Pays for damages to your vehicle caused by an accident. Comprehensive: Protect your vehicle from all non-collision damages by purchasing this type of insurance. This includes protection from burglary, vandalism, and fire or flood damage. Uninsured Motorist: Many drivers are ignoring the law by driving a car without purchasing the proper amount of car insurance. This insurance will protect you if you are in a collision with one of these drivers. Under-Insured Motorist: There are other drivers who have liability insurance that can't pay for all the expenses they are supposed to take care of. Under-insured motorist coverage covers you from those drivers. Emergency road service, car rental, and other types of coverage can also be purchased. State Farm Agent Clermont