Jargon de-coded
Approved repairer - A garage (like Motorbodies) recommended by your insurance company for car repairs covered by your insurance policy.
Comprehensive cover - The highest level of car insurance cover, which usually covers you for:
- injuries to other people
- damage to other people's property
- accidents caused by your passengers or a driver named on your policy
- the use of a trailer, while attached to your car
- fire damage and/or theft
- accidental damage to your own car
- medical expenses, up to a stated limit
- loss of or damage to personal effects in the car, up to a stated limit
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.
Excess - this is an amount of money that you are expected to contribute towards the cost of any claim you make, whether or not you were at fault for an accident.
For example, if repairing your car will cost £800 and the 'excess' on your policy is £100, you must pay the repairer the £100 and your insurance company pays the £700 remainder.
There is often a compulsory excess set by the insurance company, which you will have to pay if you make a claim. Plus the facility for an additional voluntary excess - you choose the amount. Volunteering to pay more towards a claim means you take on more risk, so the cost of your policy will be reduced.
If another party is found to be at fault for an accident, you should be able to reclaim from them the excess you have paid, as well as your repair costs.
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.
Financial Services Authority (FSA) - The UK's financial watchdog, the FSA regulates financial services companies, including insurance companies. The FSA 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 Group - All makes and models of car are given a 'group number' by the insurance trade association, the ABI. This depends on the risk and a cost related to each car and so affects what insurers will charge to insure it.
It ranges from the lowest 1 to the highest 50, based on factors like a car's value, performance, security and costs to repair.
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.
No-claims bonus (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).
Non-fault claim - With a non-fault claim your insurer is able to recover the cost of the claim from someone else.
Settlement - What your insurer pays out for a claim.
Thatcham - The Motor Insurance Repair Research Centre, or Thatcham, carries out research for the motor insurance industry on the cost of car repairs and vehicle security. Thatcham research data is used as the basis for the Group Rating Panel's car insurance group recommendations.
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 policy
Third party, fire and theft (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, e.g. a loss of earnings, or compensation for an injury suffered in an accident.
Uninsured loss recovery (ULR cover) - Your insurer offers you 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.
Write Off - when an insurer 'writes off' your car, they have decided that the cost of repairing it is more than its value and so the repair is not worth doing.
Instead they will pay you what they feel was its 'fair market value' before the damage was done. For newer cars, the insurer may find you a matching replacement car, rather than pay you the value of your old car. For cars up to one year old, some insurers will provide a brand new replacement.
There are four categories of write off, depending on the severity of the damage.
Category A cars are those effectively destroyed, with no salvageable parts.
Category B cars are too severely damaged to be repaired, but a few parts can be salvaged.
Category C cars are potentially repairable, but the cost of repair would exceed the car's value.
Category D write offs could be repaired for less than the car's value but associated extra costs, such as providing a courtesy car, make it uneconomic for an insurance company to do so.
To dispute a decision to write off your car, first ask your insurer which category your car falls into, to see if a buy-back is possible. Taking the payout from your insurance company - normally market value minus salvage value - it may make sense to have your car repaired independently. With some paperwork, the DVLA will re-classify your car as repaired. But be aware that its record will still carry a history of 'accident damage' and this may affect your car's future value and ability to sell it on. We are happy to help you on 0800 331 7423.
