Accident Terms and Definitions

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

Policy
Written contract of insurance.

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.

Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.

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.

Premium
The money paid for an insurance policy based upon the coverage provided.

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

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

Premium Finance Company
A lending institution that finances insurance premiums for a fee.

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