Accident Terms and Definitions

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

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

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.

Policy
Written contract of insurance.

Premium Finance Company
A lending institution that finances insurance premiums for a fee.

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

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

Witness
Person who testifies under oath before a court, regarding what he/she has seen, heard or otherwise observed.

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

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.