Accident Terms and Definitions

Broker
A person who for payment of a fee procures insurance on your behalf.

Salvage
Property taken over by an insurer to reduce its loss.

Policy
Written contract of insurance.

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

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

Total Loss
An insurance company declares a vehicle a total loss when a claim exceeds the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.

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

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

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

Limited Tort
Offers savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses, however you are not able to recover non-monetary damages or receive payments for pain and suffering unless injuries are defined as serious.