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Car Insurance

Car Insurance
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Insurance Terminology

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.