Insurance glossary

T

Term

The period of time for which a policy is issued to cover.

Third party

Any person who:
Becomes involved in a claim against an insurer and their client or
Who is claimed against by an insurer and their client
If you crash your car into someone you are the first party, your insurer the second party, and the person that you collide with is the third party. If they crash into you, the same applies.

Third party, fire and theft

A relatively cheap form of car insurance. Like third party coverage, but with cover against fire or theft as well.

Total loss

This is a decision made by an insurance company that it is uneconomical to repair your car.