To help vehicle owners make sense of the jargon often used in car insurance, here is a brief guide to motor insurance terminology.

A change made to your original policy. For example, if you increase the average distance you will be doing throughout the year or the details of the regular driver.

This is a clause in your insurance policy which states that if neither you nor your insurer can agree on an ‘appropriate claim settlement’ you both hire a mutually agreed appraiser to settle the dispute. The appraiser elects an independent mediator and is neutral to both parties. A majority decision will decide the amount of the claim.

Insurance companies will look at your claims history (how many claims you have made and what you have claimed for) when deciding on what to charge for your insurance premium or renewal premium. Your claims history provides info of the potential risk you pose as a customer. Some insurance companies won’t look to insure anyone who has previously made [..]

Depreciation is a deduction for wear and tear of your possessions.

An excess is the first amount payable by you in the event of a loss, and is the uninsured portion of your loss, so when you submit a claim you’ll have to pay an excess. It usually has to be paid to the garage fixing your car once it is repaired before you can drive it away. When you have to pay an excess for damages arising from an accident, it is [..]

An accident or loss where you are deemed to have caused the accident or loss, or where you or your insurance company cannot recover costs from somebody else. Some claims will always be classed as fault claims, for example when your car has been broken into and items have been stolen from it. Although you haven’t done anything wrong, there is no one [..]

Vehicles made outside South Africa and brought into South Africa.

This applies to ownership of the insured property. To insure a private vehicle, you would have to own it and suffer a financial loss if it was damaged. You can’t for example insure your neighbour’s vehicle. As you don’t own it, there would be no loss to you if it was damaged. A finance company may have an insurable interest in a vehicle if they hel [..]

The price insurers charge for insurance cover payable monthly or yearly.