Accident Terms and Definitions

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

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

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

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.

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

Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

Dismantled Title
The vehicle sustained major damage to one or more major component parts and the cost of repairing the vehicle for safe operation exceeds its fair market value.

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

Negligence
The absence of ordinary care.