Accident Terms and Definitions

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

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.

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

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

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

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.

Quote
An estimate of the cost of insurance based on information supplied to the insurance company.

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.