Accident Terms and Definitions

Policy
Written contract of insurance.

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.

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.

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.

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

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

Insurer
The insurance company providing the insurance.

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

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

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