Accident Terms and Definitions

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.

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.

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

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

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.

Negligence
The absence of ordinary care.

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.

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

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

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