Car insurance jargon buster

Our useful guide to insurance terminology

Buying car insurance should be clear and straightforward. But sometimes it's easy to confuse IPT with TPFT, or the FCA with the ABI. So here's our guide to help you with the jargon.

Jargon buster

Association of British Insurers (ABI)

Many insurance companies are members of the ABI, but membership is not compulsory and the ABI is not a regulatory body.

Members sit on aGroup Rating Panel, which recommends the汽车保险group ratingfor each new model built to a UK specification.

Approved repairer


Comprehensive cover

The highest level of汽车保险cover, which usually covers you for:

  • Injuries to other people.
  • Damage to other people's property.
  • Accidents caused by your passengers or a driver named on your policy.
  • The use of a trailer, while attached to your car.
  • Fire damage and/or theft.
  • Accidental damage to your own car.
  • Medical expenses, up to a stated limit.
  • 损失或损坏汽车中的个人效果,最高限制。



Driving other cars (DOC)

Many insurers don't offer this as a standard policy feature, so make sure you're covered before getting behind the wheel of someone else's car. It's also worth noting that when it is included, you usually get third-party-only cover.

Fault claim

An accident or loss where you are considered to be to blame, or where you or your insurance company can't recover costs from somebody else.

Remember, if your car is hit while parked, by someone who cannot be traced, this counts as a fault claim.


With a non-fault claim your insurer can recover the cost of the claim from someone else.

Financial Conduct Authority (FCA)

The UK's financial watchdog, the FCA regulates the financial services industry, including insurance companies. If you have a complaint or concern, we encourage you toget in touchwith us. However, the FCA can also advise you about making a complaint against an insurance company.



Insurance Premium Tax (IPT)

A tax on general insurance premiums, including premiums for car insurance. This tax is included in the price of your car insurance premium.

Insured value

The total amount the insurance company will pay out for your car if it's damaged beyond repair. This will either be the amount you stated the vehicle was worth when taking out the policy, or the current market value at the time of the claim – whichever is lower.

Material fact

Any information that may influence either an insurer's decision to offer you cover, or the premium they charge for it. If you leave out information which may influence a decision to offer cover, your policy may be invalidated.

No claims discount (NCD)

For each year you drive without making a claim on your insurance you get a year's no claims discount, subject to a maximum. This discount usually reduces the cost of your car insurance premium for the following year. Also described as a no claims bonus (NCB).


The amount your insurer pays out for a claim.

Thatcham Research

The Motor Insurance Repair Research Centre (Thatcham Research) carries out research for the motor insurance industry on the cost of car repairs and vehicle security. TheGroup Rating Panel, which meets to assign new car models to an insurance group, is administered by Thatcham Research on behalf of the Association of British Insurers.

Third party only (TPO)

Third party cover is the minimum level of car insurance cover required by law and contains no cover for damage to your vehicle. It usually covers your legal liability for:

  • Injuries to other people.
  • Damage to other people's property.
  • Accidents caused by your passengers or a driver named on your policy.

Third party, fire and theft (TPFT)

Third party fire and theft cover provides the same level of cover as third party cover, but also protects you against damage to your vehicle from fire, or theft of the vehicle, as long as you're not at fault.

Compare with comprehensive cover

Uninsured losses

Any losses not covered by your insurance policy, such as your policy excess; any out-of-pocket expenses following an accident, for example a loss of earnings; or compensation for an injury suffered in an accident.

Uninsured loss recovery (ULR cover)




Car insurance for £170 or less

That's what 10% of our new customers pay*

* 2010年12月至2月20日至2月20日至2月20日的新业务销售调查。仅基于全面封面的价格。