Accident Terms and Definitions

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.

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

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

Insurer
The insurance company providing the insurance.

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

Quote
An estimate of the cost of insurance based on information supplied to the insurance company.

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.

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.