Accident Terms and Definitions

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.

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

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

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.

Insured
The person(s) entitled to coverage in case of an accident or loss.

Insurer
The insurance company providing the insurance.

Commissioner of Insurance
The title of the head of most state insurance departments. In some states, the Director or Superintendent of Insurance is used instead.

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.

Policy
Written contract of insurance.

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.