Accident Terms and Definitions

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

Loss Due To Fire Title
The vehicle sustained major damage due to fire. In most states, fire damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.

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.

Junk Title
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a total loss by an insurer or other state or jurisdiction.

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

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).

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

Negligence
The absence of ordinary care.

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