Accident Terms and Definitions

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

Total Loss
An insurance company declares a vehicle a total loss when a claim exceeds the full value of the vehicle. Insurance companies typically take possession and obtain the title of such vehicles.

Policy
Written contract of insurance.

Witness
Person who testifies under oath before a court, regarding what he/she has seen, heard or otherwise observed.

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

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.

Cancellation
The termination of an insurance policy before its normal expiration date.

Salvage
Property taken over by an insurer to reduce its loss.

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

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.