Accident Terms and Definitions

Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.

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

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

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

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.

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

Producer
A term applied to an agent, solicitor or other person who sells insurance.

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.

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

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.