Glossary of Important Car Insurance Terms
Act of God
Events not caused directly by an individual that causes
damage to your vehicle. An example would be lightening.
The violent theft of your vehicle while you or your partner
is inside the car.
The payment by the insured party (you) towards a claim in
recognition of the fact that the vehicle will be worth more
following repairs pursuant to an insurance claim than it
The insured vehicle but also accessories such as spare parts,
car audio equipment and navigation equipment permanently
fitted to the vehicle.
The actual certificate that evidences the fact that you
have taken out vehicle insurance.
A formal application by the insured person/persons to recover
damage from the insurance company under the policy.
Fees paid to an intermediary by an insurance company for
promoting the sale by that intermediary of its insurance
Insurance giving the policy holder the maximum cover that
An amendment to an insurance policy. Do not confuse this
with an endorsement on your license.
The amount that the policy holder has to pay before the
insurance company will make a contribution towards an insurance
A circumstance in which the insurance company is not obliged
to pay out under the vehicles insurance policy.
This is a tax levied on nearly all non life insurance policies
including car insurance policies payable by the policy holder.
The actual market value of a vehicle of similar age and
similar condition at the time of the accident or loss.
This is an intentional violent act committed by another
person that causes death or serious bodily injury.
The actual contract or document between the insurance company
and the policy holder that sets out the legal rights and
obligations of each party.
The agreed amount paid by the policy holder for insurance.
A notice sent by the insurance company to the policy holder
inviting them to renew the policy.
The total amount for which the vehicle is insured for.
A person or persons involved in the claim who is neither
the policy holder nor the insurance company.
The amount by which a vehicle is underinsured. Unusual in
the context of car insurance.
The principle that requires the policy holder to provide
all relevant information to the insurance company in good
A vehicle which is in the view of the insurance company,
not capable of being repaired or which would cost more to
repair than to replace.