You will see more drivers on the road every year. This can lead to an increased likelihood of a collision. The difference between a little bother and major obstacle can be automobile insurance. But why is insurance necessary and just how much should you buy? Coverage requirements vary by state/province, but usually include the following: Liability: Liability pays for the expenses you are responsible for in a car collision, including injury and property damage. It can also cover your legal fees if you are sued. Recommended, higher levels of liability insurance can be purchased that cover more than the lower, state-mandated insurance. Personal Injury Protection: This type of insurance pays for hospital bills and other medical treatment for you or other people in your car, no matter who was responsible for the accident. It is sometimes referred to as no-fault coverage. The minimum amount of this insurance is typically set by local government. Medical Payments: Medical payment coverage can be purchased in non-no-fault states and will pay no matter who is responsible for the accident. If this type of coverage is purchased, the insured person will receive coverage for all types of medical or funeral expenses. Collision: Damages that occur from a collision will be paid for under this kind of insurance. Comprehensive: Applies if your car is stolen or damaged by causes other than a collision, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are in an accident with a driver without insurance or a hit-and-run driver, this type of insurance coverage will make sure you are covered. Under-Insured Motorist: Many drivers have liability insurance that can't pay for all the expenses they are responsible for. This type of insurance protects you from those drivers. Emergency road service, car rental, and other varieties of car insurance can also be purchased. Car Insurance Groveland