Every year, more automobiles and drivers hit the roads. As this number increases, the chances of a car collision will also increase. Car insurance can be the difference between a minor inconvenience and a major hassle. But why is insurance important and just how much do you need? Car accidents can result in many different expenses, which your insurance can pay for based on the type of insurance you own. Deciding to drive without owning insurance could mean you have to repair or replace a stolen or damaged vehicle or pay the cost of any damage for which you might be responsible. Liability: Pays for the expenses you are responsible for in a car accident, including property damage and injury. If you are in legal trouble, it also pays your court costs. Local laws typically require standard amounts of liability insurance, but higher amounts can be purchased and are extremely helpful. Personal Injury Protection: Personal injury protection pays for hospital bills and other medical treatment for you or other people in your car, no matter who was responsible for the collision. It is sometimes referred to as no-fault coverage. The minimum amount of personal injury protection is usually set by the state. 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 this policy has been bought, the insured person will receive coverage for reasonable medical or funeral expenses. Collision: Pays for damage to your vehicle caused by an accident. Comprehensive: This type of insurance protection takes care of any damages not caused by a collision. This could include flood damage, vandalism, and theft. Uninsured Motorist: Pays for repair and replacement costs when someone with insurance is in an accident caused by another person who does not have liability coverage. Under-Insured Motorist: Pays for collision expenses when a driver with insurance is in an accident caused by another person who does not have the right amount of insurance to cover the full cost of the damages. Emergency road service, car rental, and other varieties of coverage can also be purchased. What you pay for auto insurance varies by company and will depend on multiple factors, such as: * Which policies you select * The make and model of the vehicle you own * Your driving record * Your age, sex and marital status * The place where you live Many people think of auto insurance as a necessary evil, but it can save you from a financial fiasco. Review your needs, do your research , and with the help of your insurance agency, choose the option that fits you best. State Farm Clermont