Insurance Glossary

• ABI – Association of British Insurers – This body of people decides on current industry standards for insurance companies and codes of practice that must be maintained.

 Accidental Damage Cover – This type of cover will help protect your vehicle from unforeseen accidents that may occur, but it usually does not extent to loss or theft of the vehicle.

 Act of God – This term refers to an accident that occurs after an extraordinary event that was not expected. Storm damage, flood damage, or damages resulting from other natural disasters would fall into this category. It is not advised to drive in harsh weather conditions because your policy will not cover damage from an “Act of God” in most cases.

 Any Driver – This term refers to any person that has been given permission to drive a car, even if he or she is not the owner of the vehicle.

Approved Repairer – Some insurance companies will require that you use a repair service or mechanic that is approved, and this person/company will be referred to as an approved repairer.

 Actuary – This term refers to a person that is trained to provide complex mathematical or computerized layouts of the insurance process, and they are skilled in the technical aspects of the insurance industry.

 Arrears – This refers to a late payment or a payment that has been made after a certain event has occurred. There may be a fee associated with this type of payment.

 Breakdown Cover – This cover will protect you if your vehicle breaks down on the roads and you need immediate assistance.

 Beneficiary – This term refers to the person that receives the benefits of the insurance policy.

Broker/Agent – A broker is a person that will connect you with insurance rates from several companies. The broker usually provides these services for a fee, but they can also often find the best rates on the market. An agent is simply a person that represents a broker or insurance company.

Collision Damage Waiver – This premium can be paid in lieu of an excess. Simply stated, paying this monthly fee means that you will not have to pay any money up front (excess) if you are in an accident.

 Coveats – These are the conditions or limitations of a specific insurance quote.

 CII – Charted Insurance Institute – This body of people governs and oversees the insurance industry in the UK.

 Claim – A policyholder will place a claim if he or she is involved in an accident. This claim notifies the insurance company that they are required to make payment on behalf of the insured.

 Cover – The type of risk that the policyholder will be covered for under a specific policy.

 Disclosure – This term refers to the duty of the policyholder to provide accurate and up-to-date information to the insurer.

 Excess – The amount of money that must be paid for an accident by the policyholder before the insurer will pay the remainder.

 Exclusions – This term refers to any events that are not covered under the policy.

Green Card – A card issued to a policyholder travelling abroad that indicates he or she has the required amount of insurance.

Indemnity – This term indicates that a policyholder should be in the same position financially before and after an accident, as outlined by their insurance policy.

 Lapse – This refers to an insurance policy that has expired.

 Policyholder – The person that purchased the insurance policy.

 Premium – The monthly or annual payment that must be made in order to maintain the insurance policy.

 Third party – This is the minimum amount of cover required by law, and it will only extend to the other party in an accident. This type of cover does not protect the policyholder.

 Third party Fire and Theft – Similar cover as third party; however, the policyholder’s vehicle will be covered under certain conditions – specifically, fire and theft.