A
Accessories
Fixed parts or products specifically designed to be fitted to the insured car that are part of the manufacturer’s original specification or that you have declared to us and have been accepted by us.
Accident insurance
An additional insurance premium that will cover you, in the event of accident, and you suffer certain injuries, including loss of a limb or vision.
Act of God
This refers to an unexpected event that leads to damage or accident, which could not have been foreseen, i.e. an event that falls outside known and preventable risks, and eventualities that are beyond our control. Severe weather is the most common example: if a tree on your property was struck by lightning and fell onto your car, causing damage this would come under the ‘Act of God’ clause. The ‘Act of God’ claim can be proposed as a defence in the English law courts against a claim for liability if the event could not have been foreseen or prevented by human intervention.
Approved repairer/garage
A repairer, garage or local mechanic that the insurer has approved and authorised to repair your insured vehicle following a claim by you.
Approved windscreen supplier
A repairer the insurer has approved and authorised to repair or replace the windscreen of your insured vehicle as listed in your policy document.
B
Breakdown
A mechanical or electrical failure, puncture (providing a spare wheel is available), loss of keys, running out of fuel.
C
Cancellation Clause
This is a condition of the contract whereby the insurer or you, the policyholder, can cancel a policy before the expiration date.
Certificate of Motor Insurance
The certificate of insurance shows who can drive the car, what you can use it for and the car that is insured. It covers:
a) The car with the registration number shown on the certificate of insurance
b) A car your motor trader gives you, up to 1700cc, while your insured car is in a garage for service or repair;
c) A car the insurer gives you temporarily after an accident.
Collision damage waiver
An optional insurance premium that you may be able to take out which removes your liability to pay an insurance excess, should your vehicle be involved in an accident with another vehicle such as a hire car.
Cooling Off Period
The time period in which you, the customer may cancel the insurance policy agreement without incurring any penalties. Motor insurance usually policies carry a certain number of days cool off period. You may cancel your policy during this period and will only be charged for the time you were under cover.
Cover
This refers to the risks and eventualities that your insurance policy protects you against.
Claim
This is the request that you can make to us for payment in accordance with the terms of your policy agreement.
Contractual liability
Once you have signed your declaration and bought a policy from us you are legally obliged to adhere to the specific terms and conditions of your contract with us. Failure to meet these responsibilities can put you at risk of financial penalties. In the event that the information supplied to us regarding a claim is untruthful, you may also incur criminal charges.
D
Disclosure
When you make an application for a motoring insurance policy with us, it is your duty to disclose all relevant information that may affect our calculation of your risk and related premiums.
Driver, drivers
Any person shown in the Statement of Facts permitted to drive the insured car.
Driving abroad extension
Your UK motoring insurance policy provides you with cover for driving within England, Wales, Scotland, Northern Ireland, the Isle of Mann and the Channel Islands. In order to extend your cover for driving on the Continent or in non-EU countries, you must contact your insurance provider.
E
Emergency treatment fees
Following accident and injury, the insurer will pay emergency treatment costs as necessary under the Road Traffic Acts.
Endorsement
An endorsement is a written document attached to your insurance policy that modifies the original policy conditions and premiums to incorporate additional needs requested by you. The endorsement details changes to the coverage afforded under the original policy i.e. it allows you to add new items and eventualities at a later date during the term of the policy, such as allowing a new driver not originally named in your policy to drive the insured car.
Excess
This is the contributory amount of money that you are responsible for and have agreed to pay/your contribution to the cost of any required repairs, when you make a claim. This first payment will be specified in the Statement of Facts. It is usually a fraction of the total bill. For example, your excess could be to pay the first £100 of any claim.
Exclusions
These are the clearly stipulated events and situations for which your motoring insurance policy DOES NOT provide you with cover. Exclusions to your policy will be specified in the Statement of Facts. Examples of exclusions include damage to the insured car due to overloading by you and allowing drivers not named as approved and insured drivers in your policy to drive the insured vehicle.
F
Fault claim
A fault claim is a circumstance in which the insurer will be unable to recover all of the costs from a claim you make. For example, if your vehicle is broken into and items not covered by your policy are stolen.
Fully comprehensive
A motoring insurance policy that covers you for damage to your vehicle and damage you cause to vehicles owned by Third Parties.
G
Green card
A document that proves that you have the legal minimum insurance cover required (Third Party insurance) for driving abroad. This document is recognised by all EU countries, and is a legal requirement when driving in many EU countries.
I
Insurance broker
The broker is the intermediary between you, the customer, and insurance companies. Brokers are typically experts in their given field of insurance who research the insurance market to find the best cover for their clients. In the UK, brokers must be approved by the Financial Services Authority (FSA) to operate legally.
Insured car
The vehicle named in the Statement of Facts.
Insured Value
This is the amount of money that you have insured your vehicle for.
K
Knock for knock
In the event of a collision between two insured vehicles, ‘knock for knock’ describes the arrangement whereby the insurers of each vehicle agree to paying the cost of repairing their own client’s insured vehicle rather than each making a claim against the other and paying the costs of the other. This can dramatically cut the costs of administration fees and does not negatively affect you, the customer, in any way.
L
Liability insurance
Insurance designed specifically to cover a claim or payment due as a result of personal injury or property damage caused to another person by you / other named drivers of the insured vehicle. Liability insurance is included in our Third Party liability cover.
Limits
This is the maximum amount of insurance cover that can be paid for a total loss.
M
Main driver
The principle driver, i.e. the person who drives the insured vehicle the most whether they are the owner or not.
Market value
This means the amount of money your model of car would cost should you need to replace in today’s market. In the event of write off, the cost of replacing your insured car will be based on the market price at the time of the loss.
Material fact
A material fact refers to all the key personal information and statements the insurer asks you to disclose when applying for insurance policy cover. It is information, such as your age, gender, health and driving history that determines our decision regarding your level of risk and the premium the insurer will charge you accordingly. Failure on your part to disclose a material fact could invalidate your policy and incur penalties.
N
Named driver
A named driver or drivers are individuals that you have named on your insurance policy and permit to drive a vehicle that you own. Your named drivers could be your partner/spouse, or other family members and friends who are qualified drivers.
New for old (motor)
Rather than pay the market value of a new car involved in a total loss, some insurers will replace it with an identical new car. If it is a brand new vehicle the market value of this vehicle will have depreciated so much in the first year, that it would leave the policy holder unable to replace the car.
No Claims Discount / No claims bonus
For each claim free year insurers will give you a discount until you reach their maximum level.
Non-fault claim
This is a claim whereby the insurer is able to recover all the costs of damage to your insured car from another party i.e. the insurance company of the motorist who caused damage to your vehicle.
P
Personal possessions cover
This is an optional, additional insurance premium to cover you for the damage or theft of personal items such as money, jewellery and luggage in your insured vehicle.
Policy
This is the detail of the motor insurance cover that you have bought from your insurer.
Policy document
This leaflet provides a summary of the significant features, benefits and limitations of the cover provided by your insurer.
Policy schedule
A document provided by your insurer that details the sum insured, any discounts you may qualify for and the actual premiums you have to pay according to the terms of your policy.
Policy term
This is the time period, for example, one year, for which you are covered by your motor insurance policy, as decided by you.
Policyholder
This is the person to whom your insurer issues a policy.
Premium
This is the amount of money you will be charged by your insurer for your chosen motoring insurance policy i.e. the amount you will pay either annually or monthly for the policy cover.
Protected No Claims Discount / Bonus
This is an additional premium that you may wish to pay as part of your policy to ensure that your No Claims Bonus is kept intact in the event of a “fault” claim.
Public liability policy
This covers your legal liability for injury or damage caused to others in the event of an accident for which you are responsible.
Q
Quote
Having taken into account all the information provided by you, the quote is the amount of money an insurer calculates will be the cost of providing insurance cover and related services based on your requirements and level of risk.
R
Registered keeper
This is the person whom you have permitted to drive and look after the insured vehicle that you own on a daily or regular basis. For example, if you have loaned your car to a family member or friend and it is parked or garaged at their home/by them, you must name this individual as the registered keeper.
Renewal
This is a contractual agreement to extend or continue your insurance policy beyond the original agreed term. For example, our motoring insurance policies are set up for 12 months’ coverage and, therefore, come up for renewal on an annual basis. Our renewals process is fast and efficient allowing you to continue with the original policy terms or add any additional coverage as required.
Rider policy
Some policies offer the facility to ride any bike up to a certain CC/engine size. This is known as a rider policy.
Risk
This refers to all the circumstances and eventualities that your chosen motoring insurance policy insures you against. These include accident, fire, theft, attempted theft and accidental damage.
Risk address
The address that you have registered as the place that the insured vehicle is kept (parked or garaged).
Roadside Recovery
A motor insurance policy option and additional premium that provides recovery and repair services for vehicles/motorists when they break down on the road. Your insurer may offer a range of breakdown service options, including Breakdown Assistance and Recovery; Home-Call Breakdown Service; Nationwide Breakdown Recovery Service, and European Breakdown and Accident Assistance.
Road Traffic Act
The Road Traffic Act comprises a set of laws and all subsequent legislation concerning a driver’s responsibilities and liabilities on UK roads. This includes the law that all vehicles driven on UK roads must be insured.
S
Security devices
Certain models of cars have been identified by us as being most at risk of being stolen / subject to break in.
Settlement
This is when your insurer has agreed the terms of and paid your claim.
Standard Cover
Our standard cover Motor policy option covers: damage to your vehicle (sustained in an accident, by malicious damage, fire, theft or attempted theft), damage you cause to other people’s vehicles or property or for injuries they sustain, Uninsured Loss Recovery and Legal Expenses.
Statement of Facts
The document in which the information you provide and the cover you have bought is printed.
Suspension of motor insurance
A temporary ‘freeze’ on insurance cover while, say, a client is abroad and the car is kept in a garage.
T
Term
This is the period of time for which your policy is issued to cover. Insurance policies are typically set up for 12 months.
Third party
If you crash your car into another vehicle you are the first party, your insurer the second party, and the motorist that you collide with is the third party.
Third-party liability
This refers to your legal obligations to the third party, i.e. the motorist to whom you have caused personal injury and or damage to their vehicle, in the event of accident.
Third party, fire and theft
This is a motoring insurance policy option that provides third party coverage, plus additional cover against fire or theft.
U
Under-insurance/ under-insured
This is the situation whereby a customer does not take out enough insurance to cover their requirements, and pays smaller premiums than they should in relation to their risks. Your insurer is, as is the case for all insurance companies, only legally obliged to pay out monies to meet the exact level of cover agreed under your policy. For example if you do not insure your vehicle for a realistic insurance value you might not be able to buy a replacement car of the same value.
Underwriter
This is the title given to an insurance expert or company who assesses an insurance risk and calculates the premium that you will be charged for insuring that risk.
Underwriting
The process in which an insurance company assesses your risk based on personal information supplied by you. Your age, gender, level of health, and motoring history are all taken into account in order to assess the likelihood of you making a claim on the policy. Your insurance premiums are calculated on these factors.
Uninsured loss
This refers to anything which arises from an accident, fire or theft that your insurance policy does not cover you for.
English law will apply to uninsured loss recovery and breakdown cover. The rest of your policy with your insurer is governed by the law that applies to where you reside within the United Kingdom, Channel Islands or Isle of Man.
V
Voluntary excess
This is the amount of money that you have agreed to pay in the event you need to make a claim. It is your agreed % contribution to the cost of any required repairs, when you make a claim. This first payment will be specified in the Statement of Facts.
Valuables
Valuables include jewellery, photographic equipment, musical instruments and stamp and coin collections.
Voluntary Driving Restriction
In return for restricting the driving of the car to certain people, insurers will reduce the premium charged.
W
Waiver of premium
This is an optional additional insurance provision that sets certain conditions under which your insurance policy will be kept in full force by us without the payment of premiums. For example, it guarantees that your contributions will continue to be paid in full in the event that you fell ill or lost your job.
Written off/ a write-off
The term used to describe a vehicle which is a total loss i.e. a vehicle that is beyond repair or too badly damaged to make repairs economically viable.
We, us, our, the company
Usually refers to your insurer.
You, your
The person named as the policyholder in the Statement of Facts.
