Accident Terms and Definitions

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

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.

Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.

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.

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.

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

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

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

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.

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.