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Definition of Motor Vehicle Insurance

Motor Vehicle Insurance guarantees protection and financial coverage in the event of an accident, theft, vandalism or collision involving the insured motor vehicle. Motor vehicle insurance offers policies which typically provide property, collision, liability and medical coverage.

Property coverage pays for a damage caused to a vehicle, personal items inside the vehicle, baby seats and capsules or a theft of the vehicle.

Collision coverage is responsible for covering damage to the insured vehicle in case it collides with another vehicle or an object. This policy also takes into consideration no-fault plan benefit when a driver is not at fault of an accident and have provided the insurance company with full details of the other party.

Liability coverage pays for damage to someone else's property or for injury to other people resulting from an accident for which the insured is judged legally liable.

Medical coverage is designed to take care of payment for the cost of treating injuries, rehabilitation or funeral expenses, in some cases of the cost of lost wages.