Whether you are a new or seasoned driver, the law in the UK requires you to have a valid motor insurance policy on all your vehicles. Having to shop around for insurance is inevitably a boring and time-consuming task, which is only made harder by all the jargon you encounter along the way.
Whilst most people find shopping around is worth the effort if they end up with a better price, filling in your details on price comparison sites repeatedly and calling round to insurers can be rather tedious. The saving grace is the knowledge that, for most people, once you have found the price you’re happy to pay, you have 12 months before you have to go through it all again!
The insurance industry is littered with abbreviations, phrases and technical jargon that are complete nonsense to most people, particularly new drivers. Having to understand product abbreviations like ‘TPO’, ‘TPFT’ or ‘Fully Comp’ is hard enough, but now with the advent of new technology powering many policies, we are also having to learn about phrases such as ‘black box’, ‘telematics-based insurance’ and much more.
All of this language can sometimes lead to confusion when speaking to insurance providers or brokers, or when using insurance comparison sites. We are given a wealth of options but might not always be sure what any of them mean, and are never quite sure if we are comparing apples with oranges. This can often lead to frustration, but worse, could mean that an individual is not fully insured or that a policy is not valid.
Having to amend an insurance policy after you have taken it out could lead to costly amendments. Some insurance providers can charge as much as £100 for policyholders to make amendments during the policy term, better known in the insurance world as a, “Mid-Term Adjustment”. Hence why it’s important when shopping for a motor insurance policy to understand at least a little insurance lingo so that you are able to effectively evaluate if what you are buying is appropriate for your individual needs.
Breaking down the insurance jargon
New drivers are particularly in the dark when buying insurance for the first time and we all know that as a new driver you just want to get on the road as soon as possible. The ‘Insurance Jargon Buster’ infographic below has been created by Tiger Insurance as a quick reference guide to help when shopping around for car insurance. It is specifically written it new drivers in mind, taking the most common technical jargon from the insurance industry and giving it a normal, down-to-earth translation. Hopefully it helps you to get on the road as soon as possible.