Accident Terms and Definitions

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

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

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.

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

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

Comprehensive Coverage
Pays for damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, etc.

Quote
An estimate of the cost of insurance based on information supplied to the insurance company.

Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.

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

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.