Accident Terms and Definitions

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

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.

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

Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.

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

Flood Damage Title
States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.

Policy
Written contract of insurance.

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

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