Accident Terms and Definitions

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

Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.

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

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.

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

Junk Title
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a total loss by an insurer or other state or jurisdiction.

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

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

Broker
A person who for payment of a fee procures insurance on your behalf.

Policy
Written contract of insurance.