Car insurance jargon explained

Whether you’re applying for car insurance for the first time or renewing your policy, sometimes you are faced with the battle of getting your head around the legal jargon.

To help you make it through your car insurance application, use our guide to understand some of the most common words and phrases that appear in the process.

Comprehensive Cover

Comprehensive Cover gives you the highest level of cover for your vehicle and is recommended by providers.

This kind of policy can cover you for things such as medical expenses, loss of personal items in the car, the use of a trailer attached to your vehicle and accidents caused by an additional driver stated on your policy.

Third party

Third Party is the basic level of cover you are required to have by UK law.

This only covers you for injuries to another driver and damage to their property, but gives you no cover for your own car or yourself.

Third party, fire and theft

Similar to third party only policies, you only cover the other person involved. However, third party, fire and theft cover also insures your vehicle if it is stolen or damaged through fire.

This is only valid if you were not at fault.

Voluntary excess

This is the amount that you are willing to pay to contribute towards damages if you claim on your car insurance.

The more you are prepared to pay, the cheaper your car insurance premiums.

Approved garage

When making a claim on your car insurance, customer services will advise you on the nearest garage they approve of in your area.

The insurer will have a wide selection of garages that have been accredited by them. The insurer and the garage will then make a deal on how much it would cost to settle the claim.

No-claims bonus

Every time you renew your car insurance, you will be asked to state your no claims bonus.

This is how many consecutive years you have not had to claim on your car insurance. If you haven’t made claim for a few years, you’ll find your premiums become cheaper.


This is quite a common word in insurance and basically means what your car insurance is worth. Your premiums are what you pay up front or each month for your policy.


This is an abbreviation of the Association of British Insurers. The association is a governing body that monitors the insurance market to keep competition among providers and makes sure customers aren’t over-paying for their policies.

Make a claim

If you have an accident and contact your insurance to receive help with covering the cost, you are making a claim.

However, if you do settle a claim on your insurance, you will lose your no-claims bonus.

Additional driver

This is the part of the application process where you can add another driver to your insurance policy, which means they will be covered when they drive your car.

In order to make them a valid driver, you will need to obtain their driving history and personal details. 

Category: Car Insurance

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