Accident Terms and Definitions

Quote
An estimate of the cost of insurance based on information supplied to the insurance company.

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

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.

Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.

Hit and Run
An accident caused by someone who does not stop to assist or provide the required and necessary information.

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

Policy
Written contract of insurance.

Collision
Pays for damage to your car caused by a collision with another vehicle or with any other object, regardless who was at fault.

Insurer
The insurance company providing the insurance.

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