Accident Terms and Definitions

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.

Policy
Written contract of insurance.

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

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

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

Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.

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

Premium Finance Company
A lending institution that finances insurance premiums for a fee.

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

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.