Accident Terms and Definitions

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

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.

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.

Premium
The money paid for an insurance policy based upon the coverage provided.

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.

Policy
Written contract of insurance.

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

Venue
The specific county, city or geographical area in which a court has jurisdiction

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

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.