Accident Terms and Definitions

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

Policy
Written contract of insurance.

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.

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

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

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.

Premium
The money paid for an insurance policy based upon the coverage provided.

Insured
The person(s) entitled to coverage in case of an accident or loss.

Producer
A term applied to an agent, solicitor or other person who sells insurance.

Nonrenewal
The termination of an insurance policy at its normal expiration date.