Accident Terms and Definitions

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.

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.

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

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.

Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.

Nonrenewal
The termination of an insurance policy at its normal expiration date.

Cancellation
The termination of an insurance policy before its normal expiration date.

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

Summons
Document or writ directing the sheriff or other officer to notify a person that an action has been commenced against him in court and that he is required to appear, on a certain day, and answer the complaint in such action.

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