The insurance industry has its own arcane vocabulary. Here's a jargon-busting glossary of common car insurance terms to help you understand insurance idiom:
| Excess |
The standard amount of any claim that you must cover before the insurer pays out (usually £100-£200). |
| Fully Comp |
Fully Comprehensive cover |
| Named Driver(s) |
Specific driver(s) who can use you car under the same policy cover as you. E.g. partners, employees such as nannies, chauffeurs and childminders, and relatives (although nominating teenagers will prove costly). |
| NCD |
No Claims Discount: an escalating discount scale, from 30% to 70%. These apply when you have a claim-free record over a number of years. |
| Protected NCD |
An add-on protecting your no-claims discount even if you make a claim. The extra premium is only a fraction of the amount your NCD saves you, so it's worth having. |
| TPO |
Third Party Only cover |
| TPFT |
Third Party, Fire & Theft cover |
| ULR |
Uninsured Loss Recovery: protects you against losses that are not your fault but are not covered by your policy, for instance claiming against an uninsured driver. |
| Voluntary Excess |
A larger than standard excess - e.g. £500 - that you'll pay against any claim. Intended to discourage small claims, and reduces your premium cost. |
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