Car Insurance Advice: The Terms Explained

In the world of car insurance, there are many different terms which you will come across. You may not understand them all, so here is some car insurance advice to help explain these terms so you can understand the lingo better.

Certificate of insurance:

This is the certificate given to you by your car insurance company which states that you have valid car insurance.

Claim:

If you are in an accident or cause damage to another person’s car, you would need to file a claim which then results in your insurance company providing you with financial cover.

Comprehensive insurance:

This is a type of cover which offers the most benefits and is therefore usually the most expensive form of cover. You will be covered, regardless of who caused the accident and depending on your car insurance company, there are often many additional features.

Third party, fire and theft insurance:

This is a type of cover which applies if your car is damaged or lost due to hijacking, weather conditions, or fire. It does not apply if you accidentally damage your car.

Third party insurance:

This is a type of cover which will only cover any damage caused to another person’s vehicle (the third party), as well as any injuries incurred by the third party involved in the accident. This option does not cover you against loss or damage to your own vehicle caused by accidents, fire or theft.

Excess:

A standard amount which needs to be paid each time you file a claim. The amount differs depending on how big your claim is.

Exclusion:

This refers to anything which your car insurance company will not pay for. It should be outlined in your policy.

Market value:

The price of replacing your car with another car which is of the same model and in a similar condition.

No-claims bonus:

If you don’t make any claims for a certain amount of time, you insurance company may give you a discount for the following year. This will differ depending on your insurance company.

Policy holder:

This refers to the person who holds the policy.

Summary

Article Name
Car Insurance Advice: The Terms Explained
Description
In the world of car insurance, there are many different terms which you will come across. You may not understand them all, so here is some car insurance advice to help explain these terms so you can understand the lingo better.
Author
Publisher Name
Likemoney.co.za


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