Accident Terms and Definitions

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

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

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.

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.

Summons
Document or writ directing the sheriff or other officer to notify a person that an action has been commenced against him in court and that he is required to appear, on a certain day, and answer the complaint in such action.

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

Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.

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

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

Nonrenewal
The termination of an insurance policy at its normal expiration date.