Accident Terms and Definitions

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

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

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

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

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

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

Policy
Written contract of insurance.

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

Replacement Cost
Replacement cost is the cost of replacing lost or damaged property with new property of like kind and quality, at current market prices.

Exclusion
A contractual provision in an insurance policy that denies coverage for certain perils, persons, property, or locations.