Accident Terms and Definitions

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.

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

Insurer
The insurance company providing the 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.

Commission
That portion of the premium paid to the agent as compensation for his or her services.

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

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

Scrapped
Vehicles that have been dismantled and/or crushed and should not return to the road.

Junk Title
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a total loss by an insurer or other state or jurisdiction.

Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.