We understand that some Car Insurance terms can be confusing

So here’s a Simple Guide:

confused about insurance terms?

Q. What is an indemnity policy?

Put simply, an indemnity policy is an insurance policy to cover a defect relating to property. Such policies are commonly used to cover against the cost implications of a third party making a claim against the defects.

As an insurance policy holder, you’re placed in the same financial position following a loss as you were before it. An indemnity policy means you’ll be in the same financial position as you were before the car was damaged.

Q. What is a Non-fault claim?

With a non-fault claim your insurer can recover the cost of the claim from someone else.

Q. What is a Fault claim?

An accident or loss where you are considered to be to blame, or where you or your insurance company can’t recover costs from somebody else. E.g. If your vehicle is hit while parked, by someone who cannot be traced, this counts as a fault claim.

Q. What is a No Claims Bonus?

For each year you drive without making a claim on your insurance you get a year’s no claims discount, subject to a maximum. The no claims discount normally reduces the cost of your car insurance premium the following year. Also known as a no claims discount.


CRASH Services offer a range of services including: accident management, vehicle recovery, accident repairs, replacement vehicles, insurance claims, legal assistance and medical assistance.