Accident Terms and Definitions

Negligence
The absence of ordinary care.

Insurer
The insurance company providing the insurance.

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

Broker
A person who for payment of a fee procures insurance on your behalf.

Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.

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

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.

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.

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

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