Accident Terms and Definitions

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.

Policy
Written contract of insurance.

Negligence
The absence of ordinary care.

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.

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

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

Dismantled Title
The vehicle sustained major damage to one or more major component parts and the cost of repairing the vehicle for safe operation exceeds its fair market value.

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

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