Accident Terms and Definitions

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

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.

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

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

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

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

Insurer
The insurance company providing the insurance.

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

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.

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