Accident Terms and Definitions

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

Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.

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

Underinsured Motorist Coverage
Pays for bodily injury or wrongful death caused by an underinsured motor vehicle (that is, a vehicle which is insured, but at an amount that is less than your uninsured motorist bodily injury (UMBI) limits).

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

Policy
Written contract of insurance.

Vehicle ID No. (VIN)
This 17 character number is unique to each vehicle. It identifies characteristics of the vehicle, including manufacturer, year, model, body, engine specifications, and serial number.

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

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

Quote
An estimate of the cost of insurance based on information supplied to the insurance company.