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Financial Security and Your Insurance Coverage

The amount of drivers on the road increases each and every year. As this number goes up, the chances of a car wreck will also go up. If you get in a car wreck, the car insurance you own can make a large difference in what happens next. How can you decide what insurance you need and how you can purchase it? Auto insurance provides you with protection from paying for injury or damage you cause others while driving your car, damage to your vehicle or injury to you or your passengers from a crash, plus certain other incidents, such as theft. Every state and province requires car insurance by law. Deciding to drive without owning insurance could cause you to repair or replace a stolen or damaged vehicle or pay the cost of any damage for which you might be responsible. Liability: This kind of insurance coverage will pay for the damage that you have caused. These damages might include personal injury, and property damage. Damages from bodily injury include medical expenses, lost wages, and pain and suffering. Property damage can refer to damaged property and loss of use of property. It can also cover your defense and court costs if you are sued. Recommended, higher levels of liability insurance can be purchased that cover more events than the stripped-down, state-mandated insurance. Personal Injury Protection: This is mandated 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. Local law usually sets minimum amounts. Medical Payments: This coverage can be purchased in non-no-fault states; it pays regardless of who may be responsible. All reasonable medical or funeral expenses will be covered under this type of policy. Collision: Damages resulting from a collision will be covered under this kind of car insurance. Comprehensive: This applies if your vehicle is stolen or damaged by causes other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: This pays for repair and replacement costs when an insured person is injured in a crash caused by a driver who does not have liability coverage. Under-Insured Motorist: Many drivers have liability insurance that can't cover all the expenses they are supposed to take care of. Under-insured motorist coverage covers you in accidents involving those drivers. Other types of coverage, like car rental, are also available. State Farm Clermont