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Liability Insurance
Coverage for a policyholder's legal liability resulting from injuries to other persons or damage to their property.
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.
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.
Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.
Insured
The person(s) entitled to coverage in case of an accident or 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.
Quote
An estimate of the cost of insurance based on information supplied to the insurance company.
Surcharge
An extra charge applied to the premium by the insurer, usually for at fault accidents or moving violations.
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.
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.
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