Jargon

Insurance jargon can be a bit of a minefield, but we’ve made things a little easier for you by explaining some of the more popular terms you’ll come across whilst sorting out your insurance policy.

Excess: The excess is the amount of money you have to pay towards a loss before your insurance company starts to pay a claim.

Index Linked: Insurance where the amount of cover and premiums change automatically in line with inflation.

Loss Adjuster: An independent person paid for by the insurance company to assess the amount payable for a claim.

New For Old: Cover for property with no deduction for wear and tear. The item lost or destroyed would be replaced with a new one.

No Claims Bonus: A reward, often a discount in premiums, for not making a claim on your insurance policy.

Third Party: The party involved in an insurance claim who is neither the policyholder nor the insurer.

Under Insurance: When the sum insured is not enough to cover the maximum possible loss or damage.

Underwriter: Person who decides whether to accept a risk and calculates the premium to be charged.

Write Off: A damaged vehicle which is not repairable, or one which would cost more to repair than the car was worth before the damage occurred.