Please use our insurance glossary to clarify the meaning of any terminology used in the insurance industry. As a young driver or first time driver, the terminology used in insurance contracts can be confusing. We have created a glossary of terms of particular interest to younger motorists to help clarify any of the difficult insurance language you might come across.

Whilst this glossary has been put together by people with many years of insurance expertise, it should only be used as a guide. For the ABI glossary visit their website.

Use the letters below to shortcut to relevant areas on this glossary.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

I

Indemnity
The insurance principle by which policyholders are put in the same financial position after a loss as they were immediately before it.

Insurable Interest
A principle of insurance which states that someone may only take out cover if they stands to suffer a financial loss from an event covered by the insurance policy.

Insurance
A financial service offering financial compensation for something that may or may not happen.

Insurance Company
A company that takes on risk within the insurance policies it sells in return for the premiums.

Insurance Premium Tax
A UK governement tax imposed on most non-life insurance premiums.

Insured
The individual covered by an insurance policy.

Intermediary
This is the person or organisation that offers advice and arranges policies for clients.

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