Accident Terms and Definitions

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.

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.

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

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

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

Junk Title
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a total loss by an insurer or other state or jurisdiction.

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

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.

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