Accident Terms and Definitions

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

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

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

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.

Quote
An estimate of the cost of insurance based on information supplied to the insurance company.

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

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

Premium Finance Company
A lending institution that finances insurance premiums for a fee.

Commission
That portion of the premium paid to the agent as compensation for his or her services.

Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.