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Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.
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.
Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.
Towing & Labor Coverage
Pays for towing charges when your car can’t be driven. Also pays labor charges, such as changing a flat tire, at the place where your car broke down.
Salvage
Property taken over by an insurer to reduce its loss.
Broker
A person who for payment of a fee procures insurance on your behalf.
Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.
Underinsured Motorist Coverage
Pays for bodily injury or wrongful death caused by an underinsured motor vehicle (that is, a vehicle which is insured, but at an amount that is less than your uninsured motorist bodily injury (UMBI) limits).
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.
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