Accident Terms and Definitions

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

Commission
That portion of the premium paid to the agent as compensation for his or her services.

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

Producer
A term applied to an agent, solicitor or other person who sells insurance.

Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.

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

Cancellation
The termination of an insurance policy before its normal expiration date.

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

Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.

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.