Accident Terms and Definitions

Insurer
The insurance company providing the insurance.

Subpoena
Document issued by the authority of the court to compel a witness to appear and give testimony or produce documentary evidence in a proceeding. Failure to appear or produce is punishable by contempt of court.

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

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

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.

Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.

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

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

Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.

Premium Finance Company
A lending institution that finances insurance premiums for a fee.