Insurance terms

We have made every effort to keep our website free of jargon, but realise that some expressions might need further explanation. This glossary is intended to help you understand some of the terms used in the insurance, investment and financial services business.


Association of British Insurers. This is a trade association of which most British Insurers are members.

Accidental damage
Unexpected or unintended damage or harm to a person or property.


Beyond economic repair
Where the cost of repairing the Insured property (e.g a car) is not financially viable. Also known as a “Total Loss” or “write off”.

Many Insurance companies sell their services through brokers or intermediaries. Brokers have access to a number of companies so can provide competitive rates.


The person making a claim.

This means making a claim on your insurance policy.

Comprehensive (COMP)
Covers Accidental Damage to the driver’s own car in addition to Third Party, Fire & Theft cover.

Courtesy Car
A temporary vehicle provided to you by the garage whilst repairs are completed on your vehicle. They are often included as part of your insurance contract depending on the level of cover.

Credit Hire
Credit Hire is when a temporary replacement vehicle is provided by One Call Claims in the event of a non-fault road traffic accident, and OCC funds the car hire whilst your vehicle is being repaired.

Credit Repair
Repairs funded by One Call Claims who then claim this money back from the third party insurer.


The person defending a claim.

The fall in value of something over time such as a vehicle.

Driving Other Car extension (DOC)
It will state on the certificate of Insurance if this cover is included and the specific terms. It only applies to the driver and will only provide TPO cover.


Your pre-agreed contribution to the overall cost of an insurance claim.

This is what is given when doing a quote for repairs.


Fault/non-fault claim
The terms fault and non-fault can be confusing. A non-fault claim is simply a claim where ALL costs are recovered from someone else. If ALL costs can’t be recovered, then the claim is considered fault – even if the insured party didn’t cause the claim to happen.


This means the start of something.

Indemnity (Indemnify)
This is the main principle of Insurance. Insurance exists to replace something that has been lost or damaged, and an indemnity seeks to restore the Insured person to the same financial position after the loss as immediately before.


Being liable or not liable for the accident.

Litigation (Litigate)
To file a charge against someone or bring a case to court.


MIB (Motor Insurance Bureau)
Motor Insurance Bureau – This is a body which the government of every European country has to establish and it is funded by UK Insurers as an Insurer of last resort. The MIB will handle claims that you are involved in where the Third Party is not Insured.

Mitigation (Mitigate)
Taking action to avoid or reduce costs.


Failure to take proper care.


Pre-Accident Value (PAV)
This is the figure that represents what your car was worth immediately prior to being involved in an accident.


The renewal of a policy.

This is the possibility that something may occur.


The value of an insured item on which a claim has been paid.

Salvage value
The value of the damaged vehicle.


Third Party
This term refers to anyone affected by an accident, other than yourself. It may include drivers and passengers of other cars or owners of property.

Third Party Insurer
The Insurer of another vehicle involved in an accident.

Third Party Only (TPO)
Covers any claim made by a Third Party but not damage to the Driver’s own car.

Third Party, Fire & Theft (TPF&T)
Covers Fire and Theft of the Drivers car in addition to Third Party Only cover.

Total Loss
See beyond economic repair.


Uninsured Losses
Losses that are not insured through the Policy such as earnings.


This is the valuation of your vehicle after an inspection by an engineer.

Void Policy
This means the policy has been cancelled for some reason such as undeclared claims or not meeting the criteria.


Wear and tear
Damage to an item or property over time.

Write off
See beyond economic repair.

Without prejudice
A term used usually in an attempt to settle a dispute (in liability) without actually admitting fault by the person/company that use them.

Speak to one of our agents

Our team are on hand and happy to help if you require further assistance or your question hasn’t been answered in our FAQs.