Definition: The word "auto insurance" refers to the policy or coverage that covers loss or damage caused by an accident involving a motor vehicle, such as a car, truck, motorcycle, bicycle, or pedestrian. Definition: Auto insurance is a form of insurance designed specifically for vehicles owned by homeowners and other individuals who are at risk for accidents due to their own negligence. It typically provides financial protection against legal costs and expenses associated with any accident that results in harm to a person, property, or the environment. The policy may also cover damage to personal property (e.g., furniture, electronics, clothing) caused by an auto accident. The terms "homeowners and auto insurance" are used interchangeably when referring to the same product. Homeowners typically have policies for their own vehicles as well as those of a family member or friend who owns an auto, while auto insurance is generally designed specifically for residential properties and personal property damage.
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