There are more cars on the road every year. With countless vehicles on the road, crashes will happen. Automobile insurance can make the difference between a minor inconvenience and a major trial. But why do you need insurance and just how much do you need? Car crashes can result in many different expenses, which can all be paid for based on the type of coverage you have purchased. No matter where you are living, you will need to purchase some type of auto insurance. By not purchasing insurance, you run the risk of having to pay the total price of any harm you cause others or to repair or replace your vehicle if it is damaged or stolen. Liability: This kind of insurance will pay for the damage that you are responsible for. These damages may include bodily injury, and property damage. It can also cover your defense and court costs if you are sued. Local laws typically mandate minimum amounts of liability insurance, but higher amounts can be purchased and are very beneficial. Personal Injury Protection: This is mandated in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. It may also cover lost earnings, replacement of services and funeral costs. The minimum amount of personal injury protection is typically set by local government. Medical Payments: Medical payment coverage can be purchased in states that are not considered no-fault; it pays regardless of who carries responsibility for an accident. If you purchase this type of coverage, you will receive payment for reasonable medical or funeral costs. Collision: Pays for damage to your vehicle caused by a collision. Comprehensive: Protect your vehicle from all non-collision damages when you buy this type of coverage. This can include protection from robbery, vandalism, and weather damage. Uninsured Motorist: If you are in an accident with a driver without insurance, this type of insurance will make sure you are covered. Under-Insured Motorist: Many drivers have liability insurance that can't cover all the expenses they are responsible for. Under-insured motorist coverage protects you from those drivers. Emergency road service, car rental, and other varieties of coverage can also be purchased. Your auto insurance payments vary by company and will depend on several factors, such as: * What coverage you choose * The make and model of the vehicle you drive * Your driving record * Your age, gender and marital status * Where you live Many people consider auto insurance to be a necessary evil, but it can rescue your finances. Review your needs, research your options, and with the help of your insurance agency, make the decision that fits you best. State Farm Clermont
