Accident Terms and Definitions

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.

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.

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

Quote
An estimate of the cost of insurance based on information supplied to the insurance company.

Hearsay
Evidence based on what the witness has heard someone else say, rather than what the witness has personally experienced or observed.

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

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.

Broker
A person who for payment of a fee procures insurance on your behalf.

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.