Car Insurance Jargon
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Rate - The pricing factor upon which an insurance
premium is based, it is the cost of a given unit of insurance.
Registered keeper - The person who looks after a
vehicle, not necessarily the owner. For example, you may
use a car that is owned by someone else in which case you
would be the registered keeper. Or you may own a vehicle
that you allow your children to use and therefore the registered
keeper would be one of your children.
Reinsurance - The practice whereby one insurer transfers
part or all of the risk it has accepted to another insurer
(the reinsurer).
Renewal - An agreement to continue insurance beyond
any original term. For group insurance it is often used
to refer to the annual update of membership details and
production of annual accounts.
Replacement car - A car provided by an approved
repairer or another company instructed by the insurer whilst
repairs are made to your car under an insurance claim.
Rescission - Termination of an insurance contract
by the insurer on the grounds of mis-statement by the insured.
Reserve - The sum set aside by an insurance company
as a liability to fulfil future obligations.
Retention - The amount of risk retained by an insurance
company and not reinsured. Also used in reference to the
portion of premium that is used by the insurance company
for administration costs.
Retrocession - A process by which a reinsurer obtains
reinsurance from another company.
Rider - An amendment to an insurance policy that
modifies the policy by expanding or restricting its benefits
or excluding certain conditions from coverage.
Roadside rescue - A policy that provides recovery
and repair services for motorists. Traditionally, breakdown
services were provided by the RAC and the AA, but more recently
insurance companies have started to offer this sort of policy.
