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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.
Accident
A collision involving an automobile and anything that causes damage to the automobile, including other automobiles, telephone poles, buildings, and trees.
Premium Finance Company
A lending institution that finances insurance premiums for a fee.
Hit and Run
An accident caused by someone who does not stop to assist or provide the required and necessary information.
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.
Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.
Uninsured Motorist Coverage (UMC)
Provides coverage for a policyholder involved in a collision with a driver who does not have liability 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.
Premium
The money paid for an insurance policy based upon the coverage provided.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
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