Car Insurance - Jargon Buster

Audio Cover
Includes stereos, car phones and any other permanent audio/visual equipment installed in your car. Check with your insurer how much you are covered for.

Anti-Theft Device
A device that deters car theft. Cars equipped with anti-theft devices may entitle you to a lower car insurance premium.

Compulsory Excess
All claims have a compulsory excess amount payable by you whether you are at fault or not.

Courtesy Car
A replacement car while your car is being repaired. You should always check whether this is an included benefit or an optional extra with your policy.

Coverage
Protection and benefits provided in your insurance contract. Read your policy summary to find out what's included, or contact your insurer.

Depreciation
The decrease in value of your car due to wear and tear and/or time.

Emergency Breakdown
Roadside assistance, emergency repairs and vehicle recovery in the event of a breakdown. Coverage is subject to the terms and conditions of your car insurance policy.

Estimate
An assessment of the cost to repair your car.

Exclusion
Restrictions in your car insurance policy that limits and may exclude coverage for specific reasons.

Fault Claim
A claim made on your insurance where the insurer is not 100% reimbursed on the costs of the claim from the party at fault.

Insurance Regulatory and Development Authority (IRDA)
An independent regulator for the Indian Insurance services industry to ensure that consumers get a fair deal.

Inspection
Verification of your car's physical condition.

Modifications
A car that has been altered in any way or has equipment/accessories not standard features on the car.

Named Drivers
Any additional drivers named on your car insurance policy aside from the main driver.

Negligence
The failure to exercise care that is expected of a reasonable person in similar circumstances.

No Claims Bonus / No Claims Discount
A discount on car insurance premiums that is calculated on the numbers of years you have not lodged a claim.

Non-fault Claim
A claim made on your car insurance where the insurer is 100% reimbursed on the costs of the claim from the person/s responsible for the accident/damage/loss.

Pre-accident Condition
The condition of your car before an accident including damage not related to an accident, mileage and other factors.

Premium
The cost of your car insurance policy that you pay in exchange for coverage.

Personal Accident Cover
This cover pays for your medical expenses, lost wages and/or other accident related expenses in the event of an accident. This cover is subject to the terms and conditions of your car insurance policy.

Risk
The chance of suffering a loss. Car insurance firms will assess your perceived risk when insuring your car. Factors include age, driving record, no claims bonuses.

Voluntary Excess
An agreed excess at the beginning of your policy that forms part of your total excess. Increasing the amount of your voluntary excess can reduce your car insurance premiums. This amount is added to your compulsory excess in the event of a claim on your insurance policy.

Total Loss / Write Off
A car that has sustained extensive damage that cannot reasonably be repaired. A car is considered a total loss if it cannot be repaired safely or is not economically practical.

Warranty
A written guaranteed of the integrity of your car and of the manufacturer's responsibility for the repair or replacement of defective parts.

Windscreen Cover
This cover pays to repair or replace your windscreen.