Accident Terms and Definitions

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

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

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.

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

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

Loss Due To Fire Title
The vehicle sustained major damage due to fire. In most states, fire damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

Private Passenger Automobile
Four-wheeled motor vehicles of the private passenger, station wagon, or van type. Private passenger automobiles are designed for use on public highways and subject to motor vehicle registration.

Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.

Insurer
The insurance company providing the insurance.