Accident Terms and Definitions

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

Policy
Written contract of insurance.

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

Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.

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

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

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.

Hit and Run
An accident caused by someone who does not stop to assist or provide the required and necessary information.

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.