Car Insurance Jargon Buster

Trawling through the different car insurance providers’ quotes is painful enough, without having to worry about the jargon as well. But if you don’t know what it all means you could be losing out.

That’s why we’ve put together this car insurance jargon buster to help you through the minefield.

If you’ve got any more suggestions for the jargon buster, please let us know.

A – E | F – L | M – O | P – Z

ABI (Association of British Insurers)

Many insurance companies (though not all) are members of the ABI. It is not a regulatory body.
Members of this body sit on a Group Rating panel which recommends car insurance group ratings for each car type and model based on risk.

Broker

Brokers or intermediaries are used by many insurance companies to sell their services. They have access to a number of companies and their products, and in some cases can negotiate better deals directly with the insurance company.

Certificate of Insurance

A Certificate of Insurance is issued to you by your new insurer once you’ve paid for your car insurance, and is proof that the driver is insured for the duration of the policy.

Cover Type

It’s important you choose the right type of cover, as you may find that insurance companies won’t pay out on certain claims. The most common levels of car insurance cover include:

Third Party Only (TPO) – the minimum level of car insurance cover required by law. It usually covers your liability for any claims by third parties including injuries to other people and / or damage to their property, but contains no cover for damage to your own vehicle
Third Party Fire and Theft (TPFT) – similar to Third Party Only cover, but also covers damage to your vehicle from fire or theft provided you’re not at fault
Comprehensive (COMP) – the highest level of car insurance cover, covering accidental damage to your car, as well as the benefits of Third Party Fire and Theft cover

DOC (Driving Other Cars)

This type of cover allows the policyholder to drive cars that they don’t own, but only provides Third Party Only (TPO) cover (see above). This is not usually offered as a standard policy feature by many insurance companies, and generally doesn’t cover you if you want to drive abroad, so it’s worth checking first.

DVLA Code

These are conviction codes found on a driving license along with other details of the conviction. For example, speeding in a built-up area is denoted by the conviction code SP30.

Excess

The amount you agree to pay in the event of a claim before your insurer pays the rest of the bill. One way of lowering your premium is to accept a policy with a higher excess.

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