Accident Terms and Definitions

Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.

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

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.

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.

Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.

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.

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

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

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.

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