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Insurance terms and
their descriptions
Act of
God
This covers natural events that can't be predicted. Policies sometimes exclude
acts of God or acts of war or terrorism.
Any driver
Allows anyone to drive a vehicle, not just the owner but any driver if they
have permission to use the car.
Breakdown
cover
Provides recovery/repair services for motorists.
Broker
An independent intermediary who sells policies from different insurance companies.
Claim
This describes the process when an insurance company pays out on the policy
you bought from them.
Excess
The amount a policy holder agrees to pay in the event of a claim. An excess
is often standard with some car insurance policies. Voluntary excess can
cut the cost of most insurance premiums.
Green Card
Documentary evidence that they have the legal minimum insurance cover required.
This is not essential for European travel, because the minimum legal cover
for insurance ins europe is included automatically in UK policies.
High-risk
occupation
A job that makes a person more likely to have an accident.
Insurance
Premium Tax (IPT)
Tax charged by the Government as a percentage of insurance premiums.
Knock for
knock
An agreement between insurance companies to reduce paperwork and legal costs.
Insurers pay for the costs of claims for their own customers, rather than claiming
the money from the other par
Named driver
A driver specified on an insurance policy who is not the owner of the vehicle.
No claims
bonus
A discount that increases every year if a claim is not made.
Policy
A document that details the contract between the insurance company and the
policyholder.
Policyholder
Person who the insurer issues the policy to.
Premium
The you have to pay in return for insurance cover.
Public
Liability
Covers legal liability for injury or damage caused to others.
Settlement
Settlement occurs when an insurer pays a claim and the claim is effectively
closed.
Sum insured
The maximum an insurance company will pay for a claim.
Underwriter
A person employed by insurance companies who decide if the risk is acceptable
and calculates the premium to be charged.
Write-Off
A damaged vehicle which is not repairable, or costs more to repair than the
value of the car before damage occurred.
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