Motor vehicle insurance, commonly referred to as short-term car insurance, covers the insured's motor vehicle against a number of possible scenarios that could result in loss of the vehicle. Premiums for motor vehicle insurance are dependent on a number of factors and will also differ from one insurance company to the next. Factors include the age of the regular driver of the vehicle, last time the insured filed a motor vehicle claim (particularly for a collision) and driving habits which are determined by the amount of traffic violations issues against the insured driver. There are also varying levels of cover available to individuals, these will range from comprehensive insurance to simply third party liability insurance. The level of insurance chosen will normally be dependent on the value of the vehicle in question and the budget available to insure it. Additionally, if your child is insuring his or her first motor vehicle, ask your insurer if they have a "new driver" option available as young drivers are seen as a higher risk.