Each year, more cars and drivers hit the highways. As this number increases, the possibility of accidents also increases. Car insurance can make the difference between a small setback and a major trial. So how do you know what insurance you need and how much to buy? Car accidents can lead to many different expenses, which your car insurance might be able to pay for based on the type of insurance you own. Without insurance, you risk having to pay the total cost of the harm or injury you cause others. Liability: Pays for damages due to personal injury and property damage to others where you are responsible. It can also cover your defense and court costs if you are sued. State laws typically mandate minimum amounts of liability insurance, but larger amounts are available and very beneficial. Personal Injury Protection: This is required 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. It may also pay for lost earnings, service replacement and funeral expenses. The minimum amount of this insurance is typically set by local government. Medical Payments: This coverage can be purchased in states that are not considered no-fault; it pays despite who may have been at fault. All reasonable medical or funeral expenses will be covered under this type of policy. Collision: This pays for damage to your car caused by an accident. Comprehensive: This type of insurance takes care of any non-collision damages. This could include flood damage, vandalism, and burglary. Uninsured Motorist: This pays for repair and replacement costs when someone with insurance is injured in an accident caused by another person who does not have liability insurance or by a hit-and-run driver. Under-Insured Motorist: Similar to uninsured coverage, this type of insurance protects you against people driving without sufficient insurance protection. Other types of car insurance, including emergency road service and car rental, can also be purchased. Car Insurance Groveland