Accident Terms and Definitions

Nonrenewal
The termination of an insurance policy at its normal expiration date.

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.

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

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

Negligence
The absence of ordinary care.

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.

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

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

Comprehensive Coverage
Pays for damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, etc.

Summons
Document or writ directing the sheriff or other officer to notify a person that an action has been commenced against him in court and that he is required to appear, on a certain day, and answer the complaint in such action.