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.

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.

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

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

Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.

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

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

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.

Policy
Written contract of insurance.

Limited Tort
Offers savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses, however you are not able to recover non-monetary damages or receive payments for pain and suffering unless injuries are defined as serious.