Jargon Flashcards
D.O.C
Driving other cars (DOC)
Many insurers don’t offer this as a standard policy feature, so make sure you’re covered before getting behind the wheel of someone else’s car. It’s also worth noting that when it is included, you usually only get third party only cover.
Fault claim
Fault claim
An accident or loss where you are considered to be to blame, or where you or your insurance company cannot recover costs from somebody else.
Remember, if your car is hit while parked, by someone who cannot be traced, this counts as a fault claim.
Non Fault Claims
With a non-fault claim your insurer is able to recover the cost of the claim from someone else.
Financial Conduct Authority (FCA)
Financial Conduct Authority (FCA)
The UK’s financial watchdog, the FCA regulates the financial services industry, including insurance companies. The FCA can advise you on making a complaint against an insurance company.
Indemnity
As an insurance policy holder you are placed in the same financial position following a loss as you were before it. For example, if your insurance company pays to repair your car following an accident, you are in the same financial position as you were before the car was damaged.
Insurance Premium Tax (IPT)
A tax on general insurance premiums, including premiums for car insurance. The tax is included in the price of your car insurance premium.
Insured Value
The total amount the insurance company will pay out for your car if it’s damaged beyond repair. This will either be the amount you stated the vehicle was worth when taking out the policy, or the current market value at the time of the claim – whichever is lower.
Material Fact
Any information that may influence either an insurer’s decision to offer you cover or the premium they charge for it. If you leave out information which may influence a decision to offer cover, your policy may be invalidated.
No-claims Discount (NCB)
For each year you drive without making a claim on your insurance you get a year’s no-claims bonus, subject to a maximum. This bonus reduces the cost of your car insurance premium for the following year. Also described as a no-claims discount (NCD).
Settlement
What your insurer pays out for a claim.
Third Party Only (TPO)
Third party only (TPO)
Third party cover is the minimum level of car insurance cover required by law and contains no cover for damage to your vehicle. It usually covers your legal liability for:
injuries to other people
damage to other people’s property
accidents caused by your passengers or a driver named on your
Third party Fire and Theft Cover (TPFT)
Third party fire and theft cover provides the same level of cover as third party cover, but protects you against damage to your vehicle from fire, or theft of the vehicle, as long as you’re not at fault.
Uninsured Losses
Any losses not covered by your insurance policy, such as your policy excess, any out-of-pocket expenses following an accident, eg a loss of earnings, or compensation for an injury suffered in an accident.
Uninsured loss recovery (ULR cover)
The assistance in recovering your uninsured losses from a third party, where an accident is the third party’s fault.
Underwriter
An underwriter decides whether to accept you as an insurance risk and then calculates your car insurance premium.
