Superquote Terms / Glossary: Knock for Knock

The term knock for knock describes an agreement between insurers that essentially avoids the need for legal action to resolve claims disputes.  It applies to car insurance policies and works like this:

If John has an accident in his car, on a roundabout for example, and the blame is difficult to assess, his insurer and that of the other party may agree to settle, knock for knock.

Then each insurance company will pay their own respective part of the claim.