Accident Terms and Definitions

Insured
The person(s) entitled to coverage in case of an accident or loss.

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

Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.

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

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

Subrogation
The process in which an insurance company, after paying a loss to its insured, recovers the amount of the loss for damages (plus the insured's deductible) from the legally liable party.

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

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.

Junk Title
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a total loss by an insurer or other state or jurisdiction.

Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.