Accident Terms and Definitions

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.

Cancellation
The termination of an insurance policy before its normal expiration date.

Towing & Labor Coverage
Pays for towing charges when your car can’t be driven. Also pays labor charges, such as changing a flat tire, at the place where your car broke down.

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

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

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

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.

Nonrenewal
The termination of an insurance policy at its normal expiration date.

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

Policy
Written contract of insurance.