Accident Terms and Definitions

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

Policy
Written contract of insurance.

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

Hit and Run
An accident caused by someone who does not stop to assist or provide the required and necessary information.

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.

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

Salvage
Property taken over by an insurer to reduce its loss.

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

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.

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