Accident Terms and Definitions

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

Towing & Labor Coverage
Pays for towing charges when your car can’t be driven. Also pays labor charges, such as changing a flat tire, at the place where your car broke down.

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

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

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

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.

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

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

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

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