Accident Terms and Definitions

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance.

Loss Due To Fire Title
The vehicle sustained major damage due to fire. In most states, fire damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

Collision
Pays for damage to your car caused by a collision with another vehicle or with any other object, regardless who was at fault.

Comprehensive Coverage
Pays for damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, etc.

Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.

Policy
Written contract of insurance.

Hit and Run
An accident caused by someone who does not stop to assist or provide the required and necessary information.