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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.
Comparative Negligence
The percentage of fault shared by each driver in an accident in which both contribute to causing the collision.
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.
Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.
Towing & Labor Coverage
Pays for towing charges when your car can’t be driven. Also pays labor charges, such as changing a flat tire, at the place where your car broke down.
Producer
A term applied to an agent, solicitor or other person who sells insurance.
Commission
That portion of the premium paid to the agent as compensation for his or her services.
Premium Finance Company
A lending institution that finances insurance premiums for a fee.
Deductible
The amount of the loss which the insured is responsible to pay before benefits from the insurance policy are payable.
Venue
The specific county, city or geographical area in which a court has jurisdiction
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