5 Key Vehicle Insurance Jargon Busters!

Vehicle insurance jargon BUSTED Vanarama style

We all need vehicle insurance, but do we really need all that jargon? Excess this, compulsory that, etc. It gets tiring just trying to keep up – well, no more. Here are 5 key terms that once you know, you’ll be ready to go get insurance like a pro. Vanarama’s Tom Roberts reports.

Insurance companies are not deliberately trying to make you feel confused…even though it might sometimes feel like that. But the terms and conditions can keep on coming at you thick and fast.

Cards on the table time…insurance IS complicated, but just like making sausages you shouldn’t have to see how it’s all done. You just want hassle-free, clear-as-crystal information and the peace of mind that having a fully-insured vehicle gives you. You can totally have that!

Let’s bust some jargon!

At Vanarama, we work hard to try and make the complicated things as easy as possible for you…even when it comes to insurance! And we might have to use a couple of jargon-like words here and there, so we’ve explained the top 5 below:

  • Premium guarantee –

    A premium guarantee is a commitment on the part of the insurance company to not raise the price of your premium. In the case of our Multi-Year Insurance product, this means that from the start of your lease to the end of it, your insurance premium will not change – take a look at this infographic for more information: http://bit.ly/2ri3vZL

  • Schedule 

    This refers to a key part of your policy documents. The schedule is the document you get issued AFTER you’ve accepted your insurance. It lists the details of your policy such as the type of cover, limits, and mileage.

  • Premium 

    The term premium means the price of your insurance policy. The insurance company will work out the price of your premium based on a number of factors including where you live, how you use the vehicle and how many miles a year you do.

  • Excess 

    This refers to the amount of money you’ll need to pay towards the cost of a claim – if you make one. Most insurance companies place excesses on their policies to help them keep customer premiums costs lower, you’re often allowed to add in a voluntary excess in exchange for even lower premium prices.

  • Insurance premium tax (IPT) 

    This is a tax charged on all general insurance premiums, vehicle insurance included. The rate is set by HMRC, and from June 2017 the standard rate of Insurance Premium Tax (IPT) was increased to 12%.

 

Jargon busted…what next?

Well, we’ll bust some more in another article. But for now, you’ve got 5 key terms under your belt to discuss with your insurance company. Now you know, you’ll be ready to go.

But don’t forget to let me know the jargon you want busted. Send an email to tom.roberts@vanarama.co.uk and I’ll make sure we do it on the next blog. Until then, I hope this blog helped clear up a few questions.

Or, if you need anything explained – from Multi-Year Insurance to voluntary excesses – just give the Insurance Team at Vanarama a call on 01442 838173. They’re the experts, and they’ll help you with anything you need.