Car Insurance Jargon Guide

You could eventually drain the battery by driving a lot of short journeys with a fair amount of stopping and starting. To avoid getting a flat battery, take the car for a decent long run in the daylight – preferably without using lights, wipers and heating. The longer drive will allow the battery to recharge.

This certificate is proof you have taken out car insurance. The Certificate of Insurance is what the Police want to see if they request to look at your insurance documents.

• Third party – Covers any claim by third parties. It doesn’t cover damage to your car or injuries sustained by you.
• Third party fire & theft – Covers a claim if your car is stolen or damaged in a fire.
• Comprehensive – The highest level of cover available. The cover includes for damage sustained by you, your car, and any third parties involved in an accident, as well as fire or theft regardless of blame.

A car insurance claim is an application you make to your insurer for payment for a loss that’s covered by your policy.

• A no-fault claim – is when you are not at fault – your insurer will be able to claim back the cost from a third party.
• A fault claim – is when your insurance company cannot claim back the cost – usually where you are considered to be to blame – also if your parked car is damaged and the offender not found this would count as a fault claim.

The cover note is a temporary document in place of the certificate of insurance and the policy document.

Excess is the amount of money you need to pay in the event you are at fault in a claim. For example, if you have an Excess on your policy of £250 and make a Claim for £1000, you will have to pay the first £250 and, the insurer will pay the remaining £750.

An immobiliser is an electronic device which when activated should stop a car from being driven away.

The principal reason for having insurance – You have insurance to “Indemnify” against something that has been lost or damaged – Indemnity seeks to restore the insured person to the same position after the loss as immediately before.

No claims bonus (NCB) is critical to reducing the cost of your car insurance – each year you have car insurance and do not make a claim – your policy has added a further year NCB.

You can take out a no claims bonus protection to protect your NCB should you need to make a claim.

The document that sets out the legal and the obligations of you and your insurer.

The person that holds the insurance policy is the policyholder.

The offer from your insurer for you to renew your policy with them – it will also show an increase in the cost of your premium.

The Schedule of Insurance is the document that describes the details of your cover and the information that you’ve given your insurers.

The underwriter works for the insurer and uses data to assess the risk of potential car insurance policyholders – They decide whether or not to accept the potential policyholder’s risk and provide them with insurance cover.

When applying for car insurance, you need to be sure you choose the right Use for your vehicle, or you may find your insurance company will not pay out on a claim.

The following are the standard types of use for car insurance in the UK

• Social -Domestic and Pleasure – is normal day-to-day driving – such as driving to visit family or doing the shopping.
• Commuting – driving to work and back – or driving to the railway station.
• Business Use – driving in connection with your job – such as to different sites away from your place of work.
• Commercial Travelling – when used for such things as door-to-door sales.

On an insurance policy, you need to pay a Compulsory excess in the event of a claim when you are deemed to be at fault. Voluntary excess is an additional amount you decide to spend and will reduce the cost of your insurance premium.