Motor vehicle insurance.  Motor vehicle insurance usually covers physical damage to the insured's vehicle under either "comprehensive" or "collision" coverage. Collision coverage applies when damage is due to a motor vehicle collision and comprehensive applies to almost any other kind of damage such as fire or falling rocks. Medical bills for injured occupants of the insured vehicle is often covered. Any legal obligations to third parties based on negligent operation of the vehicle are also covered. Finally, unless no-fault laws apply uninsured motorist coverage (see below) provides a special protection.

Does no-fault apply?   If the accident occurred in a country, state or province that does not apply fault to a motor vehicle accident, consult those laws. The laws in no-fault jurisdictions set forth what remedies are available to an injured party.  

Finding fault.   The method on how fault is allocated among parties to an accident varies among countries, states, and provinces. Fault is commonly based upon the negligence of each party and how much the negligence contributed to the accident and injuries or damages. A person is required to operate a motor vehicle in a reasonable manner so as to always maintain proper control of the vehicle. Failure to do this is simple negligence. Gross negligence and intentional wrongdoing go beyond simple negligence.

How is fault is decided.   An investigation of the accident uncovers physical evidence and the statements of witnesses in order to assess fault. Based upon the accident is reconstructed to the extent necessary to assess the fault of each party.

UM and UIM coverage.   If another party is at fault in an accident but cannot be identified or has no insurance, uninsured motorist coverage (UM) or underinsured motorist coverage (UIM) stands in the place of the insurance of the other party. It would pay occupants of the insured vehicle as if it were the liability insurer for the other party.

Is the accident covered?   Questions of whether there is coverage often involve the status of the driver. If the driver was not a permissive user or was excluded under the policy, coverage may be affected. Such a driver would likely not be covered, but if the owner of the vehicle is not the driver there may be coverage for any separate liability the owner has. An example of separate liability of the owner would be that based on negligently entrusting the vehicle to a particular driver. Coverage issues might also be based on whether liability to a third party arises out of the use of the vehicle. As an example, a wrong might be done in a vehicle but does not involve the use of the vehicle.