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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.
Premium
The money paid for an insurance policy based upon the coverage provided.
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.
Limits
The maximum amount of benefits the insurance company agrees to pay in the event of a loss.
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.
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.
Limited Tort
Offers savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses, however you are not able to recover non-monetary damages or receive payments for pain and suffering unless injuries are defined as serious.
Salvage
Property taken over by an insurer to reduce its loss.
Full Tort
With this selection you retain unrestricted rights to bring suit against the negligent party.
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