Car Insurance Jargon

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

ABI - An acronym for the Association of British Insurers - the regulatory body for the UK insurance industry.

Accidental damage cover - Insurance that protects against damage to goods rather than loss or theft. Not always included as part of motor cover, but sometimes applies to vehicle contents, it will replace possessions that are stolen or damaged, but it doesn't protect against more minor hazards.

Act of God - An accident or event which happens independently of human intervention, usually due to natural causes such as storm or earthquake, which no human foresight can provide against. Suggesting that an event was an "act of God" may be a defence in English law against a claim for liability since it may be held that it could not have been foreseen or safeguarded against. One of the reasons why it can be inadvisable to drive your vehicle in adverse or dangerous weather condtions

Actuary - A professional trained in the technical aspects of insurance and its related fields, particularly in the mathematics of insurance and the calculation of premiums and reserves. An actuary uses complex computerised mathematical methods to provide analysis of claims data and other statistics. In certain circumstances insurance companies are required to have documents or calculations certified by an actuary. In this and other legal contexts the word means a qualified Fellow of the Institute or Faculty of Actuaries.

Addendum - An addition or change to a contract.

Advance payment - An up-front payment.

Affiant - A person who makes a sworn statement. You may require one of these if an insurance claim goes to court.

Affidavit swear fee - Can be charged when an insurance company is required to swear an affidavit (make a written legal statement) to a solicitor in connection with an insurance claim or counter claim.

Affiliate tradesmen - Your insurance provider may insist that any repair work on your home is carried out by a tradesmen selected by them. This can mean that they have negotiated favourable rates or have approved them as meeting certain standards of workmanship.

Agent - Someone who acts on behalf of another. Traditionally, insurance company salesmen have often been called agents. This has led to a certain amount of confusion since in some situations they are acting on behalf of the client and at other times they are acting on behalf of the insurance company.

Agent recommendation - A product or service provider recommended by estate agents, mortgage brokers or building societies with whom they have often negotiated favourable terms and so can offer a special deal as part of the package. It should never be a mandatory requirement that you must use their selected firm or product, and if they do insist, then it might be worth complaining. Companies often receive financial incentives to recommend one particular firm, product or service - whilst this is perfectly legal, it means they don't necessarily have your best interests at heart.

All risks - An insurance policy that covers all risks - except those not listed under its exclusions.

Annual policy - An insurance policy that applies all year round rather than any other period such as a holiday or car hire period.

Any driver - Insurance that allows anyone to drive a vehicle, not just the owner, so long as they have permission to use the car.

Approved repairer - A panel of repairers, usually throughout the whole country, who the insurance company recommend to repair your car.

Arbitration - A means of arriving at an acceptable agreement between two disputing parties. An independent person or body, often a member of the Institute of Arbitrators, hears the arguments of both parties and makes a decision that is then binding on all concerned.

Association of British Insurers - An association representing some 450 insurance companies which account for over 95% of the business transacted by UK insurance companies. It is also the forum through which UK insurance companies collectively liaise with Government Departments and other bodies and come together to set industry standards and codes of practice.