The amount of cars on the road increases each and every year. With so many vehicles on the road, accidents will happen. Automobile insurance can make the difference between a small setback and a major hassle. But why do you need insurance and exactly how much should you buy? Auto insurance protects you by covering the cost of injury or damage you cause others while you are driving, damage to your car or personal injury or injury to your passengers from an accidents, and specific other situations, such as burglary. Auto insurance is mandated by state law. Without insurance, you run the risk of having to pay the total cost of the harm or injury you cause others or of repairing or replacing your car if it is damaged or stolen. Liability: Personal injury and property damage that you are responsible for will be covered under liability insurance. It also covers your legal fees if you are sued. Recommended, higher levels of insurance are available that cover more events than the lower, state-mandated insurance. Personal Injury Protection: Personal injury protection pays for hospital bills and other medical treatment for you or other people in your car, regardless of who was responsible for the accident. It is mandated in some states and optional in others. It can also cover lost earnings, replacement of services and funeral costs. State government typically sets minimum amounts. Medical Payments: This type of coverage can be purchased in non-no-fault states and will pay no matter who is responsible for the accident. If you buy this type of coverage, you will receive payment for necessary medical or funeral costs. Collision: Pays for damages to your car caused by an accident. Comprehensive: Protect your car from all non-collision damages 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 an uninsured driver, this type of insurance will make sure you are covered. Under-Insured Motorist: Pays for damages when an insured person is injured in an accident caused by a driver who does not have the right amount of insurance to cover the total amount of the damages. Other kinds of car insurance, like emergency road service, are also available. What you pay for auto insurance varies by company and will depend on several factors, such as: * What coverage you select * The type of the car you drive * Whether or not you have been in an accident * Your age, gender and marital status * Where you live Some drivers don't want to pay for auto insurance, but it is honestly something you don't want to live without. Review your needs, research your options, and with the support of your insurance agency, make the decision that fits you best. State Farm Clermont