Accident Terms and Definitions

Policy
Written contract of insurance.

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

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.

Venue
The specific county, city or geographical area in which a court has jurisdiction

Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.

Witness
Person who testifies under oath before a court, regarding what he/she has seen, heard or otherwise observed.

Negligence
The absence of ordinary care.

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

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.

Flood Damage Title
States issue flood titles when a vehicle has been in a flood or has received extensive water damage.