Accident Terms and Definitions

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

Negligence
The absence of ordinary care.

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

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.

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

Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.

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.

Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.

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

Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.