Accident Terms and Definitions

Insured
The person(s) entitled to coverage in case of an accident or loss.

Flood Damage Title
States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

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

Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.

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.

Broker
A person who for payment of a fee procures insurance on your behalf.

Cancellation
The termination of an insurance policy before 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.

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

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