Accident Terms and Definitions

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.

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

Limited Tort
Offers savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses, however you are not able to recover non-monetary damages or receive payments for pain and suffering unless injuries are defined as serious.

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.

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.

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

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

Policy
Written contract of insurance.

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

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