There are more cars and drivers 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 accident, the auto insurance you own can make a large difference in what happens next. But why do you need to own insurance and just how much should you purchase? Mandated coverage varies by state/province but usually includes the following: Liability: It pays for the expenses you have caused to others in a car collision, including injury and property damage. Bodily injury damages can include medical expenses, lost wages, and pain and suffering. Property damage can refer to damaged property or loss of use of property. It also covers your defense and court costs if you are sued. Local laws usually mandate standard amounts, but higher amounts can be purchased and are very beneficial. Personal Injury Protection: This type of insurance pays for the medical treatment for you or other people in your car, no matter who was at fault in the crash. It is mandated in some states and optional in others. It can also cover lost wages, service replacement and funeral expenses. The minimum amount of this insurance is usually set by the state. Medical Payments: Medical payment coverage is available in states that are not considered no-fault and will pay regardless of who is responsible for an accident. All reasonable medical or funeral expenses will be covered under this type of policy. Collision: Pays for damage to your car caused by a collision. Comprehensive: Applies if your car is stolen or damaged by causes other than a collision, including fire, wind, hail, flood or vandalism. Uninsured Motorist: Pays for damages when someone with insurance is in an accident caused by a driver who does not have liability insurance or by a driver who cannot be identified (usually a hit-and-run driver). Under-Insured Motorist: Similar to uninsured motorist protection, this type of insurance protects you against drivers without sufficient insurance coverage. Emergency road service, car rental, and other types of coverage can also be purchased. What you pay for car insurance varies by company and will depend on several factors, such as: *Your desired coverage *Your vehicle's make and model * Whether or not you have been in an accident * Your age, sex and marital status * Where you live Some have come to think of car insurance as a necessary evil, but it is something you will need if you are ever in an accident. Review your needs, research your options, and with the help of your insurance agent, make the decision that fits you best. Car Insurance Groveland