Accident Terms and Definitions

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.

Nonrenewal
The termination of an insurance policy at 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.

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.

Hit and Run
An accident caused by someone who does not stop to assist or provide the required and necessary information.

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.

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

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

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

Misdemeanor
Criminal offenses less than felonies; generally those punishable by fine or imprisonment of less than 90 days in a local facility. A gross misdemeanor is a criminal offense for which an adult could be sent to jail for up to one year, pay a fine up to $5,000 or both.