business insurance Lakewood CO We see more drivers on the road each year. As this number increases, the chances of a car wreck will also go up. The difference between a small aggravation and major pain can be the car insurance you have purchased. But why is insurance necessary and just how much should you buy? Car crashes can result in a variety of different expenses, which your car insurance might be able to pay for based on the type of coverage you have purchased. By not purchasing insurance, you run the risk of having to pay the total price of any harm or injury you cause others or of repairing or replacing your vehicle if it is damaged or stolen. Liability: Bodily injury and property damage that you have caused will be paid for under liability insurance. If you are in legal trouble, liability insurance can pay for your court costs. State laws typically require standard amounts of liability insurance, but larger amounts can be purchased and are extremely helpful. Personal Injury Protection: This type of insurance pays for the medical treatment for you and other people in your car, no matter who was at fault in the collision. It is required in some states and optional in others. It can also cover lost wages, replacement of services and funeral costs. The minimum amount of this insurance is typically set by the state. Medical Payments: This coverage can be purchased in non-no-fault states; it pays despite who carries responsibility for a collision. It pays for all insured person’s necessary medical and funeral expenses for bodily injury from a crash. Collision: Damages that occur from a collision will be paid for under this kind of car insurance. Comprehensive: Applies if your vehicle is stolen or damaged by something 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 another person who does not have insurance. 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 in accidents involving those drivers. Other kinds of coverage, like emergency road service and car rental, can also be purchased.