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.

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

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

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

Total Loss
An insurance company declares a vehicle a total loss when a claim exceeds the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.

Policy
Written contract of insurance.

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

Scrapped
Vehicles that have been dismantled and/or crushed and should not return to the road.

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

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