Accident Terms and Definitions

Nonrenewal
The termination of an insurance policy at its normal expiration date.

Cancellation
The termination of an insurance policy before its normal expiration date.

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

Negligence
The absence of ordinary care.

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.

Airbag Deployment
Occurs when the driver, passenger or side airbag has been used or deployed during a crash or other incident.

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.

Claim
Notice to an insurer of a loss that under the terms and conditions of a policy may be covered.

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

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.