Accident Terms and Definitions

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

Negligence
The absence of ordinary care.

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

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.

Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.

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

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.

Collision
Pays for damage to your car caused by a collision with another vehicle or with any other object, regardless who was at fault.

Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.

Loss Due To Fire Title
The vehicle sustained major damage due to fire. In most states, fire damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.