Car Insurance Jargon Buster
ABS
Anti Lock Braking System
Alarm
A Security device fitted to the vehicle to discourage theft. A discount may be available depending on the model of the alarm fitted.
Association of British Insurers (ABI)
The ABI represents the collective interests of the UK insurance industry and promotes high standards of customer service.
Approved Repairer
Repairers authorised and recommended by your Insurance Company.
Breakdown Cover
An optional extra to the policy, which will provide full breakdown cover for the vehicle providing it, is under 15 years old. This provides cover for roadside assistance; home start cover and also European breakdown assistance.
Certificate of Motor Insurance
The final document issued by the insurance company providing proof of insurance as required by law.
Claims
Fault Claim An incident where there is no recovery of the costs paid by your insurer from a third party whether the incident is your fault or not.
Non-Fault Claim An incident where the costs have been recovered in full from another insurer or individual.
Convictions
Any endorsement on your current driving licence such as speeding. You may need to notify us of any conviction within the past five/ten years, even though they may have been removed from your licence. The details of convictions can be found on the paper counterpart of your licence and normally appear in the form of a 4 digit code (ie SP30 for a standard speeding conviction).
Cover
Comprehensive - Full cover provided by the Insurance Company, to include Accidental Damage to your vehicle even if the incident is not your fault, as well as Fire, Theft and damage to Third Party property and injury
Third Party Fire & Theft - Cover provided for the vehicle for Fire or Theft damage as well as damage to any Third Party property and injury
Third Party Only - Cover provided for damage to any Third Party Property or injury excluding any damage to the insured vehicle.
Covernote
A temporary document of insurance issued whilst the full policy documents are being prepared or whilst information is outstanding.
Driving Licence
The legal document required to drive a motor vehicle
EU Licence - As long as a full EEC Licence has been issued the holder may drive in the European Community subject to the minimum driving age and restrictions.
Full UK Licence - Issued after passing the driving test allowing the holder to drive a vehicle unsupervised.
Provisional Licence - The licence issued to learner drivers. You must be supervised by qualified person who has held a full licence for 3 years or more and over the age of 21 years old.
Driving Other Cars (DOC)
If provided by your insurers, this provides Third Party Only cover when driving a vehicle, which does not belong to you or is hired to you under a hire agreement. DOC is designed to be used only in an emergency and not on a daily basis. This provides cover only for cars and will NOT extend to small vans etc.
DVLA
Driver and Vehicle Licensing Agency
Excess
The amount of any claim, which you will need to repay in the event of a claim, as set by the insurance company.
Compulsory Excess The actual amount set by the insurance company
Inexperience Excess - An amount in addition to the compulsory excess and any voluntary excess that you have accepted with regards to age or driving experience. As a driver under the age of 25 years old there will be inexperience excess applicable to comprehensive cover. The amount is dependent on the insurer and your age.
Voluntary Excess This is an additional amount you may wish to pay on top of the compulsory excess, which in turn may reduce the premium.
Foreign Use / Green Card
Additional cover provided by the insurance policy to allow the vehicle to be driven within the majority of the EU countries. Most insurers will provide this cover free of charge subject to the country you are visiting and the type of cover provided by the insurer.
Immobiliser
An electronic security device fitted to the vehicle, which is usually activated when the key is removed from the vehicle. Designed to prevent the unauthorised starting of the vehicles engine without a key. A discount may be available depending on the model of immobiliser fitted to the vehicle.
Inexperienced Driver
A person who has not held a Full UK or EU driving licence for a period greater than 12 months.
Insurer / Insurance Company
An organisation, which is authorised to provide insurance cover in exchange for a premium.
Insurance Premium Tax (IPT)
An amount added to the insurance Premium, which is a Government Tax, charged as a percentage.
Legal Service/Cover
An additional service or policy, which you may have purchased to pursue uninsured losses following an accident that is not your fault. This may include a policy excess, compensation for injuries or cost of alternative transport that are not insured by the policy.
Market Value
The cost of replacing a motor vehicle with one of a similar make, model and condition at the time of a claim.
Material Fact
A Material Fact is any fact, which could influence the Insurance Companys decision on whether a risk is acceptable or if terms and conditions should apply.
Modifications
Any changes made to the vehicle that is not a standard factory option. This may include spoilers, alloy wheels or engine modifications. Any modifications to the vehicle may make this an unacceptable risk to insurers or may attract an additional premium.
Monthly Payments
A way of splitting the total cost of the insurance over the course of the year, this involves a deposit and then generally followed by nine equal monthly payments taken from your bank account by a finance provider.
No Claims Bonus
A discount that will accrue every year generally starting at around 30% rising to around 70% dependent on the insurer as the maximum bonus represent five plus years of claim free driving.
Pass Plus
An additional course of lessons following the successful completion of a driving test, where additional skills may be learned and driving experience gained. This may reduce the insurance premium when a new policy is incepted. Typically for new drivers who have had a full licence for less than one year.
Policy
The document issued by the insurance company, which provides full details of what is and what is not covered under the policy contract along with the description of any endorsements, which apply to the policy.
Premium
The amount required by the Insurer for the insurance cover.
Protected No Claims Bonus
Once you have received 4 or more years no claims bonus you may be able protect your discount for an additional amount of typically 10%. If you have a claim with such protection this will generally allows two claims in a period of five years before your no claims bonus is reduced.
Tracker / Tracking Device
An electronic security device fitted to the vehicle, which is activated after a theft of a vehicle allowing it to be located. These are generally subject to a yearly payable contract but may provide a discount on your insurance depending on the model and insurer. In some cases it will be a requirement that such a device is fitted due to the value or nature of the car.
Uninsured Loss
Any element not covered by your insurance policy, such as the policy excess.
Use
How the vehicle to insured is going to be used on a daily basis.
Social Domestic & Pleasure Mainly used for personal use, shopping or visiting friends etc.
Commuting Drivers may use the vehicle to travel to and from a permanent place of work. Even travelling to a train station where the vehicle is left for the day would class as commuting
Business Use This provides cover for the vehicle to be used in connection with your employment, such as travelling to different offices.
Commercial Travelling Covers the vehicle to be used as above but also including commercial travelling and full business.
Write Off
A vehicle which has damaged beyond repair, or costs more to repair then the value of the vehicle prior to any incident.
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