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Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.
Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
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.
Cancellation
The termination of an insurance policy before its normal expiration date.
Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance.
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.
Premium
The money paid for an insurance policy based upon the coverage provided.
Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.
Insurer
The insurance company providing the insurance.
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