Accident Terms and Definitions

Dismantled Title
The vehicle sustained major damage to one or more major component parts and the cost of repairing the vehicle for safe operation exceeds its fair market value.

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

Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.

Negligence
The absence of ordinary care.

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

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.

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.

Misdemeanor
Criminal offenses less than felonies; generally those punishable by fine or imprisonment of less than 90 days in a local facility. A gross misdemeanor is a criminal offense for which an adult could be sent to jail for up to one year, pay a fine up to $5,000 or both.

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

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.