Accident Terms and Definitions

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.

Policy
Written contract of insurance.

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

Producer
A term applied to an agent, solicitor or other person who sells insurance.

Insurer
The insurance company providing the insurance.

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

Towing & Labor Coverage
Pays for towing charges when your car can’t be driven. Also pays labor charges, such as changing a flat tire, at the place where your car broke down.

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

Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.

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