Car Insurance Glossary
It’s very important that you fully understand your insurance cover and know exactly what your policy does and doesn’t protect you against. To help you, here is a list of commonly used insurance terms and abbreviations.
ABI Group - ABI stands for Association of British Insurers, and every car is categorised by an ABI grouping - a ranking of the risk level for that specific type and model
Approved Repairer - A selected vehicle repairer recommended by your insurer
Cover note - a temporary insurance certificate for use until your policy is issued
DOC cover - Cover for driving other cars
Excess - the amount of money you have to pay if you make a claim
Fault Claim - When your insurer cannot recover costs, regardless of who was at fault for an accident
Hazard - factors likely to affect loss, damage or injury, and increase the premium cost - such criteria being, for example, a new driver being more of an insurance hazard than an experienced motorist
Indemnity - when the insurance policy holder is put in the same financial position after a loss as they were immediately beforehand
Insurance certificate - Your formal proof of insurance – you need one to road tax your car
IPT - A Government tax on premiums, charged as a percentage
LGC - Legal expenses cover
Loading - additional charges that can be made by the insurer
Loss adjuster - insurance claim assessor
Material fact - failure to disclose information that could invalidate an insurance policy, such as driving convictions
No claims bonus - The discount given by insurers calculated on number of the previous years that have been claim-free. If more than one car is insured, the bonus must be earned separately for each car
Non-Fault Claim - When your insurer can recover the cost from someone else
Off-screen rate - the premium a broker can offer you having negotiated directly with the insurance company
Owner - the person or company to whom the car belongs
Policy document - this tells you everything your car insurance covers you against
Protected no claims - an add-on you can pay for which stops you losing your no claims bonus if you make a claim
Registered keeper – the person or company to whom the car is officially registered
Risk - that’s you, really. How much of a risk you are considered by your insurer determines how much your premium will be
Screen rate - the premium a broker can offer in behalf of an insurer, accessed by computer
SD&P - Social Domestic and Pleasure – a description of car use
Settlement - The payment of an insurance claim
TPO - Third Party Only
Under-insurance – When a car is insured for less than its value (something for which insurance companies almost invariably reduce claims)
Uninsured losses - factors not covered by the insurance, such as hire charges
ULR - Uninsured loss recovery, known as legal expenses cover, which can be added on to your policy
Underwriter - The person who decides whether to accept an insurance risk and calculates the premiums