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.

      According to the Insurance Information Institute, in the United States in the early 21st century, about two-thirds of the money spent on premiums for private passenger auto insurance went to claims. More than half of this amount covered car damage. The rest covered personal injuries. The remaining third of the money spent on premiums covered insurance companies' expenses—such as commissions, dividends to policyholders, and company operations—and contributed to their profits.

      In many countries, other approaches to automobile accident insurance have been tried. These include compulsory liability insurance on a no-fault basis and loss insurance (accident and property insurance) carried by the driver or owner on behalf of any potential victim, who would recover without regard to fault.

      Most existing no-fault plans are limited in the sense that they usually permit the insured party to sue the party at fault for damages in excess of those covered by the plan and permit insuring companies to recover costs from each other according to decisions on liability. Total no-fault insurance, on the other hand, would not permit the insured to enter tort liability actions or the insurer to recover costs from another insurer.

* * *


Universalium. 2010.

Look at other dictionaries:

  • Vehicle insurance — Vehicle insurance, in exchange for a premium, will pay valid claims arising out of traffic collisions Vehicle insurance (also known as auto insurance, gap insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks,… …   Wikipedia

  • Motor vehicle theft — Vehicle with broken window. Motor vehicle theft (sometimes referred to as grand theft auto by the media and police departments in the US) is the criminal act of stealing or attempting to steal a motor vehicle (such as an automobile, truck, bus,… …   Wikipedia

  • Motor-vehicle inspection (Japan) — This article incorporates information from the equivalent article on the Japanese Wikipedia. Shaken (車検?), a contraction of Jidōsha Kensa Tōrokuseido (自動車検査登録制度 …   Wikipedia

  • Ontario Motor Vehicle Industry Council — The Ontario Motor Vehicle Industry Council (OMVIC) licences and regulates motor vehicle dealers in Ontario and administers the Motor Vehicle Dealers Act on behalf of the Minister of Consumer Services. OMVIC’s mandate is to maintain a fair, safe… …   Wikipedia

  • Iowa Department of Transportation Motor Vehicle Enforcement Agency — Infobox Law enforcement agency agencyname = Office of Motor Vehicle Enforcement commonname = abbreviation = patch = patchcaption = logocaption = badge = badgecaption = flagcaption = motto = mottotranslated = mission = formedyear = 1975 preceding1 …   Wikipedia

  • American Association of Motor Vehicle Administrators — The American Association of Motor Vehicle Administrators (AAMVA) is a non governmental, voluntary, tax exempt, nonprofit educational association. AAMVA is a private corporation which strives to develop model programs in motor vehicle… …   Wikipedia

  • inside a motor vehicle — Inside the vehicle in the place ordinarily occupied by one driving or riding. Anno: 39 ALR2d 961 (construing phrase as it appears in an accident insurance policy or the accident feature of a life insurance policy) …   Ballentine's law dictionary

  • in or on a motor vehicle — A clause depicting the risk of loss under a policy of accident insurance which, as such, is to be construed in favor of the insured. 29 Am J Rev ed Ins § 262. Having the body in some sort of physical contact with the automobile, not necessarily… …   Ballentine's law dictionary

  • insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… …   Universalium

  • Insurance fraud — Criminal law Part …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.