Language of Car Insurance Companies

Getting to grips with Car Insurance terms

If you are a driver you have to have insurance to drive a car. However, trying to understand what some of the jargon in an insurance document actually means can be a little confusing.  Here we have put some of the most common phrases with a ‘man on the street’ explanation.
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amusing image of a car almost being hit by a tree for a car insurance advert

The most common insurance terminology is Comprehensive cover:
This is the highest level of car insurance you can get.  This will cover you for injuries to others, including their property.  It will cover accidents caused by your passengers or a driver named on your policy. When you take out the policy you will be given a stated limit for which you can claim on Medical expenses and loss of or damaged property within the car. Your car will be covered for fire and theft and accidental damage. If you have a trailer and it is attached at the time of an incident this should also be covered. It is always worth checking these details before paying any money, any changes to a policy will normally incur an admin fee.

No-claims bonus (NCB) we know its important to our future insurance cover but why?
For each year you drive your car and do not make any claims on your insurance you gain a no claims bonus for that year.  If you are chopping and changing your car insurance each year, and let’s face it we all do to get the best deals get the best deals, make sure at the end of each insurance year with that the insurance company you were with sends you proof of your no claims.  Your next insurance company will want to see evidence of this.  The No claims bonus can be subject to a maximum.  By having a good no claims against your name means that your next policy should be slightly cheaper.

Claim terms in your insurance
Fault claim – This is where you are considered to be at blame, or if your insurance company is unable to recover costs from somebody else.  Should you park your car and return to find it damaged and there is no one to be held responsible then this is considered a fault claim.
Non-Fault claim – This is where your insurance company is able to recover any costs from somebody else.

Car leasing and insurance
When you lease a vehicle from us, that vehicle will be in the name of CVS Ltd.  This should not affect the price of your insurance as the insurance is reflected on you as a driver and the type of car.  However, when you do make enquiries it is better to be clear from the beginning, because when you give the vehicle details their database will show the car belongs to us.

When you have decided on your vehicle from us, as soon as we have purchased the vehicle for you we will send you all the required details so you are able to arrange insurance cover.  We will require copies of your insurance cover during your leasing agreement term.

Check out more posts from Compass Vehicle Services.

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