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

ULR - ULR or Uninsured Loss Recovery is an additional insurance protection that you should consider purchasing. Where a motor accident was the fault of a third party, our insurers will attempt to recover your uninsured losses including repair costs, policy excess, loss of use, hire costs of alternative vehicle, transport costs, etc.

Under-insurance - When a customer takes out too little insurance, paying smaller premiums than they should. Insurance companies take a dim view on under-insurance, and they will almost always scale down a claim as a result. So, if you insure a car for £8000 when it's worth £10,000, they will only pay out £8000 if it is written off. Even worse, if the car sustains more minor damage, the insurer will only pay four fifths of a claim.

Underwriter - A technician trained in evaluating risks and determining rates and coverage for them. The term derives from the practice at Lloyd's of each person willing to accept a portion of the risk writing his name under the description of the risk.

Underwriting - Where an insurance company takes into account known facts like your age, sex and health, in order to assess the likelihood of you making a claim on the policy. Your insurance premiums are calculated after taking these factors into consideration.

Underwriting decision - A decision made by insurance underwriters based on evidence supplied. Utmost good faith The principle of insurance which requires a proposer to give all relevant information to the insurer.