There are more cars hitting the road each year. As this number goes up, the chances of a car accident will also go up. If you get in a car wreck, the car insurance you have can make a big difference in how much you have to pay. So how do you know what insurance you need and how much to buy? Insurance requirements will differ by state/province, but usually include the following: Liability: This kind of insurance coverage can pay for the damage that you are responsible for. These damages may include personal injury, and property damage. If you are in legal trouble, this type of insurance can pay for your defense and court costs. Local laws usually require minimum amounts of liability insurance, but higher amounts are available and usually recommended. Personal Injury Protection: This type of insurance pays for all medical treatment for you and other people in your car, regardless of who was at fault in the accident. It is commonly referred to as no-fault coverage. This insurance may also pay for lost earnings, service replacement and funeral expenses. The minimum amount of personal injury protection is usually set by local government. Medical Payments: This type of coverage is available in states that are not considered no-fault and will pay regardless of who is responsible for an accident. If this type of coverage has been bought, the insured person will receive payment for all types of medical and funeral expenses. Collision: Damages that occur from a car accident will be covered under this kind of car insurance. Comprehensive: Applies if your vehicle is stolen or damaged by causes other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are hit by an uninsured driver, this type of insurance coverage will protect you. Under-Insured Motorist: Many drivers have liability insurance that can't pay for all the expenses they are supposed to take care of. This type of insurance protects you from those drivers. Other types of coverage, including car rental, are also available. State Farm Clermont