Accident Terms and Definitions

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.

Policy
Written contract of insurance.

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

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.

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

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.

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

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

Broker
A person who for payment of a fee procures insurance on your behalf.

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.