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Why is Insurance like Formula 1

With the next Formula 1 Grand Prix happening in Belgium in only a weeks time, we decided that it was about time this adrenaline high sport featured on our blog! While it’s not the most Active sport to follow the Active motto, it certainly highlights some of the biggest hurdles between people like you and the insurance industry.

Yes, we’re talking about jargon. As with F1, cricket, golf and many other sports, the insurance industry also has its fair share of hard to understand jargon – it’s about time we stopped letting it scare you!

Did you know that each grand prix is insured for between $75million and $100million! Read more about that from the source here.

Below you can find some of the most confusing F1 terms and their equally confusing insurance terms.

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Formula 1 Jargon

Ballast: the use of weights around the car to keep it balanced and make sure it meets the weight limit.

Bargeboard: bodywork on the car between the front 2 wheels to keep the car aerodynamic.

Chicane: a part of the race course that uses very tight, sharp corners to slow down the cars.

Graining: when grains tear away from the grooves on the tyres. This happens when a car slides on the tracks.

Monocoque: the piece of body on the car that is situated where the cockpit is.

Paddock: the area where each team keeps their car transporters and motor homes. Each one is kept private.

Parc Ferme:  this is the fenced off area that cars stay in between races and qualifying to make sure they are not tampered with.

Shakedown: a quick test used on never before used cars.

Torque: the turning force of an engine, used to measure how flexible it is.

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Insurance Jargon

Beneficiary: the person that will receive the money or other belongings from a trust, Will or Life Insurance policy.

Dependant: person that you support financially i.e. your children, parents or partner.

In Trust: assigning a trustee to look after the money when  you pass away – this means that it won’t be subject to inheritance tax.

Indexation: means the amount of money paid out will grow with inflation so you are always adequately covered.

Inflation: the general increase in prices and the fall in value of money.

Policy: A policy is the legal document that states all the terms and conditions of the Life Insurance you are investing in.

Premiums: Premiums are the monthly payments to the insurer to pay for your Life Insurance.

Renewal: renewing your policy before it ends so that it will go on for longer.

Underwriter: The underwriter is the person who will either decline or accept your application for the insurer.

Did you know that Lewis Hamilton’s net worth is $280 million (£179,349,223.20)! We hope he has adequate insurance in place should anything happen to him. But you don’t have to be a superstar Formula One driver to protect the ones you love – insurance doesn’t have to be expensive or confusing if you know how to get it right! Leave it to the experts at Active Brokers to get it right for you. Find out more here.

Useful Links

Insurance Jargon

F1 Jargon

F1 News

F1 Results

F1 Calendar

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