Some important terms connected with car insurance:
Act of God - An event not caused directly by an individual that causes damage to your vehicle. An example (albeit an unlikely one) would be a meteor strike. More often than not acts of God are uninsurable.
Aggravated theft - The forceful or violent theft of your vehicle while you or your spouse is inside the car.
Betterment - The payment by the insured party (i.e. you) towards a claim in recognition of the fact that the vehicle will be worth more following repairs pursuant to an insurance claim than it was beforehand.
Car - The insured vehicle but also, usually, accessories such as child car seats, spare parts, in car audio equipment and electronic navigation equipment permanently fitted to the vehicle.
Certificate of Insurance The certificate that evidences the fact that you have taken out insurance on your vehicle.
Claim - A formal application by the insured party to recover damage from the insurance company under the policy.
Commission - A fee paid to an intermediary by an insurance company for promoting the sale by that intermediary of its insurance products. In most instances you - the consumer - have a legal right to know what commissions have been paid to an intermediary if you purchase cover through one. Some intermediaries, however, go to considerable lengths to hide what they have been paid.
Comprehensive Insurance - Insurance giving the policy holder the maximum cover available.
Endorsement - An amendment to the insurance policy. Not to be confused with an endorsement on your license.
Excess - The amount that you - the policy holder - have to pay before the insurance company will make a contribution towards a claim.
Exclusion - An event or circumstance in which the insurance company is not obliged to pay out under the policy.
Insurance Premium Tax - A tax levied on nearly all non life insurance policies including car insurance policies payable by the policy holder.
Market value - The market value of a vehicle of similar age and in similar condition at the time of accident or loss.
Physical assault - An intentional violent act committed by another person that causes death or serious bodily injury.
Policy - The contract or document between the insurance company and the policy holder that sets out the legal rights and obligations of each party.
Premium - The amount paid by the policy holder for insurance.
Renewal notice - The notice sent by the insurance company to the policy holder inviting him/her to renew the policy.
Sum insured - The total amount for which the vehicle is insured.
Third party - A party involved in the claim who is neither the policy holder nor the insurance company.
Underinsurance - The amount by which the vehicle is underinsured. Unusual in the context of car insurance.
Utmost good Faith - The insurance principle that requires the policy holder to provide all relevant information to the insurance company in good faith.
Write Off - A vehicle which is either, in the view of the insurance company, not capable of being repaired or which would cost more to repair than to replace.