Car insurance jargon buster

- Advertisement -

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.

Car insurance jargon busterMotor Car insurance jargon explainedcar insurance jargon explained in plain English

- Advertisement -
Kevin Nave
Kevin Nave
Kevin Nave is the digital marketing executive for the car insurance comparison site He has a passion for all things motoring, with a focus on helping consumers save money on their car insurance. He regularly blogs helpful hints and tips to help you make better-informed decisions about your car insurance.

Latest Expert Advice

Loophole over mobile phone use by drivers set to be closed

A loophole that allows drivers to escape punishment for hand-held phone use will be closed under plans announced by the Government.

Tyre safety month: How to keep your tyres in order

Tyre safety is crucial, but checking your tyres needn’t be complicated. Here’s what to look at to ensure that you're safe on the road.

Latest Expert Ratings

Renault Mégane

The Renault Mégane has distinctive styling and generous equipment levels, but it's not as spacious and lacks the quality of its main rivals.

Skoda Octavia

Based on initial UK reviews, the Skoda Octavia holds an outstanding score of 86% on The Car Expert's unique Expert Rating index.

Cupra announces prices and specs for new Formentor

The Cupra Formentor – the brand’s first bespoke vehicle rather than a pumped-up SEAT model – has gone on sale in the UK.

Updated Volkswagen Tiguan opens for ordering

Volkswagen has announced pricing for the updated Tiguan mid-size SUV, as well as expanding the engine range on its Arteon executive car.

Covid pandemic is changing our car buying plans

New research suggests up to 14 million UK car owners have changed their minds about their next car purchase as a result of Covid-19.

Britain’s best-selling cars, September 2020

The Vauxhall Corsa roared back to the top of the sales charts in September, while the Ford Focus dropped way down the order.

More from The Car Expert

Expert Advice

Award-winning, independent and impartial advice on buying, financing, owning and running a car

Expert Ratings

We analyse and aggregate dozens of media reviews for each new car into an overall Expert Rating

Expert News

All the most important new car launches, model updates, car reviews and industry news

Expert Partners

Our new space for commercial partners to bring you special offers on their products and services

What are your thoughts? Let us know below.