Accident Terms and Definitions

Policy
Written contract of insurance.

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.

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

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.

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

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

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

Commission
That portion of the premium paid to the agent as compensation for his or her services.

Insurer
The insurance company providing the insurance.

Salvage
Property taken over by an insurer to reduce its loss.