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.

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

Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.

Negligence
The absence of ordinary care.

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.

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

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.

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

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.

Policy
Written contract of insurance.