Car insurance, that motor vehicle insurance, referred to as auto insurance, refers to motor vehicle accidents due to natural disasters or caused personal injury or property damage liability of a business insurance. Auto insurance is a kind of property insurance, property insurance in the field, auto insurance is a relatively young insurance, this is because auto insurance is accompanied by the emergence and popularity of the automobile production and development. Meanwhile, the modern motor vehicle insurance is different is that in the early stages of car insurance third party liability insurance is mainly car insurance, and gradually extended to the risk of vehicle collision losses.

Improve the productivity, scientific and technological development of human society to civilization, and civilization in the car to transport facilities to human life, but also to humanity due to motor transport in the collision, overturning and other accidents caused property damage and personal injury or death. Moreover, with improved productivity, scientific and technological progress, the risk of accidents caused by increasing losses, harm to human society, more and more serious. Motor vehicle in the course of natural disaster risk and the probability of accidents is higher, especially in the event of third party liability in the accident, the damages are difficult to pass self-compensation. Motor vehicle use in the process of risk and the risk of loss is difficult to pass on risk avoidance, prevention, spread, suppression, and risk retention can be solved had to be transferred through insurance or the best way in which risk and risk of loss to scattered in the whole of society and transfer, in order to maximize resist risks.

Car users to pay the premium for the conditions, their cost may be subject to all or part of the risk onto insurers. Motor vehicle insurance is an important way to transfer risk, the risk of a large number of units in the collection, based on a small number of the insured person may suffer the consequences of loss passed on to all the insured person, the insurer, as between the insured intermediary imposed financial compensation. By motor vehicle insurance, motor vehicles will have businesses, families and individuals facing the consequences of various risks and losses to be distributed within the whole society and passed on. Motor vehicle insurance is the risk of dealing with modern society, a very important tool, is to transfer risk in one of the most important and most effective technology, is an indispensable economic compensation system.