motor vehicle insurance
motor
vehicle insurance, also called automotive insurance, a contract by which the
insurer assumes the risk of any loss the owner or operator of a car may incur
through damage to property or persons as the result of an accident. There are
many specific forms of motor vehicle insurance, varying not only in the kinds
of risk that they cover but also in the legal principles underlying them.
Liability
insurance pays for damage to someone else’s property or for injury to other
persons resulting from an accident for which the insured is judged legally
liable; collision insurance pays for damage to the insured car if it collides
with another vehicle or object; comprehensive insurance pays for damage to the
insured car resulting from fire or theft or many other causes; medical-payment
insurance covers medical treatment for the policyholder and his passengers.
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