Accident Terms and Definitions

Policy
Written contract of insurance.

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

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.

Scrapped
Vehicles that have been dismantled and/or crushed and should not return to the road.

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.

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

Producer
A term applied to an agent, solicitor or other person who sells insurance.

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

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.

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