What does this blah blah insurance term mean?

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Insurance Glossary and Terms

What does No claims discount mean? What does Excess mean? And other insurances terms you didn't know and probably did not want to know.

ABI Group - Association of British Insurers group. The association is responsible for assigning a risk for each make and model of car. Each car is then assigned a group from 1 to 20, the highest risk is 20.

Act of God - Natural events that cannot be foreseen. Polices may sometimes not cover claims made by such events.

Any driver - Allows any driver to drive the vehicle, not just the named driver. Note that the driver must have the policyholders permission and that are legally allowed to drive the car.

Approved repairer - A list of garages that the insurance company requests you have your vehicle fixed with. Typically the vehicle is repaired and the cost is settled directly with the insurance company.

Breakdown cover - a bonus to your policy are includes recovery services.

Broker - An independent intermediary (middle man) who sells policies from different insurance companies.

Claim - the process in which an insurer payouts to you is known as a claim

DOC (Driving other cars) - You are insured to drive other people’s cars with their permission.

Excess - When making a claim, part of the cost is paid by the policyholder and is known as the excess amount.

FSA (Financial Services Authority) - Financial regulator who monitor car insurance providers in the UK.

Fully comprehensive - The highest level of insurance available. See also this link.

High-risk occupation - A job where accidents have a higher chance of occurring.

Insurance Premium Tax (IPT) - The percentage of tax charged on insurance premiums by the Government.

Insured value - The value you stated for your car when you purchased your policy.

Named driver - A driver that uses the vehicle in addition to the policyholder.

Non-fault claim - The insurer is able to recover the costs of the repair as you have been deemed the innocent party in the accident.

No claims bonus/discount (NCD) - A discount that increases every year if a claim is not made. The more you have, the cheaper your car insurance is.

Policy - The document that details the contract between you and the insurance company is known as the policy.

Policyholder - The person who has taken out the insurance contract and has been issued the policy.

Premium - The cost of the the insurance cover.

Renewal Notice - A notice sent out to the policyholder as a reminder to renew the policy.

Settlement - Settlement occurs when an insurer pays out for a claim you have made.

Sum insured - The maximum an insurance company will pay for a claim.

SDP (Social, domestic and pleasure) - a description of how you plan to use your vehicle; as opposed to for work purposes.

TPO (Third party only) - when your policy only covers the cost of damages you have done to third parties. See also this link.

TPFT (Third party fire and theft) - the same as third party only but the policy covers for the theft of your car and if your car is damaged by fire. See also this link.

Underwriter - The person who decides the premium to be charged based on your details and risk.

Write off - when the cost is beyond repair or cheaper to replace than repair.

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