Accident Terms and Definitions

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

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.

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

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

Policy
Written contract of insurance.

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.

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.

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.

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.

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