Accident Terms and Definitions

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.

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.

Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.

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

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.

Flood Damage Title
States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

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

Insurer
The insurance company providing the insurance.

Insured
The person(s) entitled to coverage in case of an accident or loss.