Accident Terms and Definitions

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.

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

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

Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.

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

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.

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

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.

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.

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.