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Binder
A temporary or preliminary agreement which provides coverage until a policy can be issued/delivered.
Collision
Pays for damage to your car caused by a collision with another vehicle or with any other object, regardless who was at fault.
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.
Underinsured Motorist Coverage
Pays for bodily injury or wrongful death caused by an underinsured motor vehicle (that is, a vehicle which is insured, but at an amount that is less than your uninsured motorist bodily injury (UMBI) limits).
Premium Finance Company
A lending institution that finances insurance premiums for a fee.
Cancellation
The termination of an insurance policy before its normal expiration date.
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.
Junk Title
A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a total loss by an insurer or other state or jurisdiction.
Quote
An estimate of the cost of insurance based on information supplied to the insurance company.
Nonrenewal
The termination of an insurance policy at its normal expiration date.
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