Accident Terms and Definitions

Medical Payments Coverage
Covers the medical costs (up to the specified limit you choose) resulting from an auto accident for you, your family, and others in your car. It pays regardless of fault.

Collision
Pays for damage to your car caused by a collision with another vehicle or with any other object, regardless who was at fault.

Policy
Written contract of insurance.

Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.

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

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

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

Insured
The person(s) entitled to coverage in case of an accident or loss.

Summons
Document or writ directing the sheriff or other officer to notify a person that an action has been commenced against him in court and that he is required to appear, on a certain day, and answer the complaint in such action.

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