Accident Terms and Definitions

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

Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance.

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

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

Limited Tort
Offers savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses, however you are not able to recover non-monetary damages or receive payments for pain and suffering unless injuries are defined as serious.

Gap Insurance
Insurance that pays the difference between the actual cash value of a vehicle and the amount still to be paid on the loan. Some gap policies may also cover the amount of the deductible.

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.

Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.

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

Nonrenewal
The termination of an insurance policy at its normal expiration date.