Accident Terms and Definitions

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

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.

Underinsured Motorist Coverage
Pays for bodily injury or wrongful death caused by an underinsured motor vehicle (that is, a vehicle which is insured, but at an amount that is less than your uninsured motorist bodily injury (UMBI) limits).

Insured
The person(s) entitled to coverage in case of an accident or loss.

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

Policy
Written contract of insurance.

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

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.

Dismantled Title
The vehicle sustained major damage to one or more major component parts and the cost of repairing the vehicle for safe operation exceeds its fair market value.

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.