ABI: Association of British Insurers (ABI) is a British financial organization that represents more than 400 insurance firms in the UK. It has a code of practice that the members must obey. They get together every month with other associated organizations to fix group ratings for all the latest passenger cars in the UK.
Airbags - An inflatable bag that holds air or some other gas installed in cars for safety purposes. It is used for cushioning in case of a severe vehicle accident. It decreases the risk of fatality in a head on collision by 30%.
Body shell - The external structure of a vehicle.
Damage and parts costs - The level of damage to a car and the expenses incurred while the car is being repaired which are factored in to group insurance.
Diminution of value - When the market value of a damaged vehicle reduces even after it has been repaired.
Group rating - Insurance firms in the UK categorize vehicles such as light commercial vehicles and motor cars with an accurate level of insurance with a group number ranting of 1-20.
Group rating panel - A board of members of the Association of British Insurers (ABI) and Lloyds Market Association (LMA) that get together monthly to assign group rating for all new passenger cars and light commercial vehicles in the UK.
Front crash - When a vehicle collides with another from the front end.
Light commercial vehicles - Vehicles used to transport light weight goods. A panel van, curtain sider and box vans are examples of light commercial vehicles.
Private cars – These are cars that are purchased for non-commercial usage. Examples of private cars: Honda, Chrysler, Ford. Private cars are also known as passenger cars.
Pre-accident condition - When a vehicle gets restored or repaired to the state it was before the accident took place. This term leads to diminution of value.
Performance - The speed level, engine efficiency and acceleration level of a vehicle. Based on the performance of a car, group insurance is purchased.
Premium - Regular periodic payment for insurance is known as premium. The periodic payments can be monthly or annually.
Repair times - The time it takes for a vehicle to be repaired. An approved repairer will give you the estimated repair times and labor costs. Repair time plays a role in assigning a group insurance rating.
Rear crash - When a car collides from the back.
Risk -The possibilities of loss or damage to a car or light commercial vehicle.
Vehicle security - Security systems that are fitted to cars in order to reduce car crimes. Vehicle security usually includes alarms and immobilizers.
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