Accident Terms and Definitions

Comprehensive Coverage
Pays for damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, etc.

Scrapped
Vehicles that have been dismantled and/or crushed and should not return to the road.

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

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.

Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.

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

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

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.

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

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.