Accident Terms and Definitions

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

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.

Premium
The money paid for an insurance policy based upon the coverage provided.

Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance.

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.

Policy
Written contract of insurance.

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

Misdemeanor
Criminal offenses less than felonies; generally those punishable by fine or imprisonment of less than 90 days in a local facility. A gross misdemeanor is a criminal offense for which an adult could be sent to jail for up to one year, pay a fine up to $5,000 or both.

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

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