Accident Terms and Definitions

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

Policy
Written contract of insurance.

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.

Salvage
Property taken over by an insurer to reduce its loss.

Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.

Venue
The specific county, city or geographical area in which a court has jurisdiction

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.

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.

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