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.

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

Policy
Written contract of insurance.

Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.

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

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

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.

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.

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.