Accident Terms and Definitions

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.

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

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.

Towing & Labor Coverage
Pays for towing charges when your car can’t be driven. Also pays labor charges, such as changing a flat tire, at the place where your car broke down.

Total Loss
An insurance company declares a vehicle a total loss when a claim exceeds the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.

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.

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.

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

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