There are more cars hitting the road every year. As this number goes up, the chances of a car accident will also go up. Car insurance can make the difference between a minor setback and a major trial. So how can you find out what insurance you need and how much to purchase? Insurance requirements vary by state/province, but typically include the following: Liability: This type of insurance will pay for the damage that you are responsible for. These damages can include bodily injury, and property damage. It can also cover your legal fees if you are sued. Local laws typically require standard amounts of liability insurance, but higher amounts can be purchased and are very beneficial. Personal Injury Protection: Personal injury insurance is required in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. This insurance can also pay for lost earnings, replacement of services and funeral expenses. The minimum amount of personal injury protection is usually set by the state. Medical Payments: This type of coverage can be purchased in states that are not considered no-fault and will pay no matter who is responsible for the accident. All reasonable medical or funeral expenses will be covered under this insurance policy. Collision: Damages resulting from a car accident will be covered under this type of insurance. Comprehensive: Protect your vehicle from damages from other sources by purchasing this type of insurance. This may include 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 will protect you. Under-Insured Motorist: Similar to uninsured coverage, this type of insurance protects you against drivers without sufficient insurance protection. Other types of coverage, like car rental, are also available. What you pay for car insurance varies by company and will depend on multiple factors, including: * Which policies you select * The make and model of the vehicle you own * Your driving record * Your age, sex and marital status * Where you live Some have consider car insurance as a necessary evil, but it can truly save you from a financial disaster. Review your needs, do your research , and with the guidance of your insurance agent, make the decision that fits you best. Car Insurance Groveland