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Car Insurance Glossary

Here is a Car Insurance Glossary giving definitions of car insurance related terms.

Remember, sumps is NOT a car insurance wiki, neither is it a car insurance blog - I write, edit and publish all the car insurance information and reviews here.

(Car Insurance Glossary Last updated: 21/01/09)

Car Insurance Glossary

Car Insurance

Definition: Car Insurance is to provide protection against losses incurred as a result of traffic accidents. In the United Kingdom, third party car insurance is required for all drivers by law.

(Last updated: 21/01/09) | Car Insurance

Comprehensive Car Insurance

Definition: Comprehensive Car Insurance Cover will includes third party insurance plus fire and theft of the vehicle insurance and in addition the vehicle itself will be insured against any other damage from whatever cause. Comprehensive Insurance can vary widely amongst vehicle insurance providers and can include or exclude many incidental costs and expenses so always check around and consider different quotations from as many companies as possible for your car insurance.

(Last updated: 21/01/09) | Car Insurance

Insurance

Definition: Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Vehicle insurance (or auto insurance, car insurance, motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents.

(Last updated: 11/12/07) | Car Insurance

No Claims Bonus

Definition: A discount earned against the cost of your car insurance policy by staying accident, and therefore claim free.

(Last updated: 11/12/07) | Car Insurance

Third Party Car Insurance

Definition: Third Party Insurance Cover is the minimum cover required by the law when driving in the United Kingdom and offers protection only for damages to the other cars and people in the unhappy event of an accident. Damage to your own vehicle in an accident will not be covered by this type of motor insurance.

(Last updated: 21/01/09) | Car Insurance

Third Party Fire and Theft Car Insurance

Definition: Third Party Fire and Theft Motor Insurance offers the same basic cover required by the law for third-party insurance and in addition the vehicle you drive will also have insurance cover for it catching fire or being stolen.

(Last updated: 21/01/09) | Car Insurance

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