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AA Car Insurance Terminology and Jargon

AA Car Insurance: Terms and Jargon

To help you make sense of the jargon that's often used to describe auto insurance, here is our guide to car insurance terminology.

Approved repairer: A garage recommended by your insurance company for car repairs covered by your auto insurance policy.

Comprehensive cover: The highest level of car insurance cover, which usually covers you for:

  • Injuries to other people.
  • Damage to other peoples' property.
  • Accidents caused by your passengers or a driver named on your policy.
  • The use of a trailer, while attached to your car.
  • Fire damage and/or theft.
  • Accidental damage to your own car.
  • Medical expenses, up to a stated limit.
  • Loss of or damage to personal effects in the car, up to a stated limit.
  • Please note that policy features will vary between insurers, so always check them before you buy.

Driving other cars: Some insurers don't offer this as a standard policy feature, so make sure you're covered before getting behind the wheel of someone else's car. It's also worth noting that when it is included, you usually get third party only cover.

Fault claim: An accident or loss where you are considered to be to blame, or where you or your insurance company cannot recover costs from somebody else.

Remember, if your car is hit while parked, by someone who cannot be traced, this counts as a fault claim.

Non-fault claim: With a non-fault claim your insurer is able to recover the cost of the claim from someone else.

The Central Bank of Ireland: The Central Bank of Ireland is the Financial Regulator for Ireland’s financial services companies including insurance companies.

Indemnity: As an insurance policy holder you are placed in the same financial position following a loss as you were before it. For example, if your insurance company pays to repair your car following an accident, you are in the same financial position as you were before the car was damaged.

Insured value:   The total amount the insurance company will pay out for your car if it's damaged beyond repair. This will either be the amount you stated the vehicle was worth when taking out the policy or the current market value at the time of the claim - whichever is lower.

Material fact: Any information that may influence either an insurer's decision to offer you cover or the premium they charge for it. If you leave out information which may influence a decision to offer cover, your policy may be invalidated.

No-claims bonus (NCB): For each year you drive without making a claim on your insurance you get a year's no-claims bonus, subject to a maximum. This bonus reduces the cost of your car insurance premium for the following year. Also described as a no-claims discount (NCD).

Settlement: What your insurer pays out for a claim.

Third party only (TPO): Third party cover is the minimum level of car insurance cover required by law and contains no cover for damage to your vehicle. It usually covers your legal liability for:

  • Injuries to other people.
  • Damage to other peoples' property.
  • Accidents caused by your passengers or a driver named on your policy.

Third party, fire and theft (TPFT): Third party fire and theft cover provides the same level of cover as third party cover, but protects you against damage to your vehicle from fire, or theft of the vehicle, as long as you're not at fault.

Uninsured losses: Any losses not covered by your insurance policy, such as your policy excess, any out-of-pocket expenses following an accident, eg a loss of earnings, or compensation for an injury suffered in an accident.

Uninsured loss recovery (ULR cover): Your insurer offers you assistance in recovering your uninsured losses from a third party, where an accident is the third party's fault.

Underwriter: An underwriter decides whether to accept you as an insurance risk and then calculates your car insurance premium.

AA Ireland Limited trading as AA Insurance is regulated by the Central Bank of Ireland.