Accident Terms and Definitions

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

Nonrenewal
The termination of an insurance policy at its normal expiration date.

Policy
Written contract of insurance.

Witness
Person who testifies under oath before a court, regarding what he/she has seen, heard or otherwise observed.

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.

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

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.

Medical Payments Coverage
Covers the medical costs (up to the specified limit you choose) resulting from an auto accident for you, your family, and others in your car. It pays regardless of fault.

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

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