Glossary
Flow car insurance glossaryDon't know your MIB from your NCD? You're not alone. So, we've explained the common car insurance terms that leave people scratching their heads.
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A
An accident is an unexpected, unwanted and sometimes violent event resulting in damage and harm to someone and/or something.
Accidental damage is damage caused suddenly and unexpectedly, by external means, and isn't deliberate.
Additional drivers are drivers named on your car insurance policy as well as yourself, the policyholder.
An advanced driving qualification is a way of improving your road skills, helping you to be a better driver. The Institute of Advanced Motorists (IAM) offers Advanced Driving Tests.
Aggravated theft, also known as car-jacking, is where you, a named driver or a passenger is physically assaulted as a result of your car being involved in a theft or attempted theft.
An approved repairer is one we've approved and authorised to repair your vehicle following a claim.
B
A 'breakdown' is when a vehicle can’t be driven as a whole because of mechanical or electrical failure, theft or attempted theft, vandalism, accidental damage, a flat tyre, a lack of fuel or incorrect fuelling during the period of cover. Failure of any parts of the vehicle to function e.g. an indicator, headlight, windscreen wiper or convertible roof does not constitute a breakdown, unless it means the vehicle can’t be driven or it’s likely to result in the driver being prosecuted for using a defective vehicle.
Business use is when the car insured is used for business purposes, including travelling to more than one place of work and travelling between places of work.
C
Cancellation is the ending of a policy before it's due to expire. There may be a cancellation clause in a policy setting out the conditions under which the policy may be cancelled by notice. Sometimes it means you can get some of your premiums refunded, but in many cases you won't get anything back. Please check our car insurance document to read our cancellation policy.
A certificate of motor insurance is proof that your car is insured. It’s required by law if your car is used or kept on a public highway.
You make a claim when you apply for compensation from your insurer. In other words, when you ask for payment owed to you under the terms of your insurance policy.
Comprehensive car insurance covers damage and vandalism caused to your car as well as damage and/or injury you cause to another vehicle or its driver in an accident. It also covers your car if it's damaged by fire or stolen and not recovered.
A cooling off period is the time you have to change your mind when buying insurance or other products or services. The period of time can vary, so check your policy details.
D
A document of car insurance is the policy booklet we send you along with your other car insurance documents.
The Driver and Vehicle Standards Agency is the part of the UK Department for Transport (DfT) responsible for setting the standards and conducting theory and practical driving tests. The DVSA is also responsible for:
- statutory regulation of driving instructors and trainers
- promoting voluntary registers and non-statutory activities to improve driving standards
Visit www.dvsa.gov.uk to find out more about the Driver and Vehicle Standards Agency.
The Driver and Vehicle Licensing Agency is an executive agency of the Department for Transport (DfT). Among other things, it’s responsible for issuing driving licences and vehicle registration documents. Visit www.dft.gov.uk/dvla to find out more about the DVLA.
E
European insurance cover is cover needed to drive your car in EU countries.
An excess is the amount you have to pay towards a claim yourself. There are two types:
- A compulsory excess is an excess applied by your insurer and varies depending on your circumstances.
- A voluntary excess is the amount you agree to pay, in addition to your compulsory excess, if you make a claim. In other words, you agree to pay a higher part of each claim in return for a lower premium.
Please refer to your insurance documents to find your payable excess.
F
See European insurance cover (above).
Fronting is when a driver is added to a car insurance policy as a named driver when they’re actually the main driver. If you do this, any subsequent claim could be rejected because you'd have given false information when you applied for your car insurance.
H
The Highway Code is a list of rules, many of them legal requirements, applying to all road users. It’s essential reading for everyone who uses the roads, including pedestrians, horse riders and cyclists, as well as motorcyclists and drivers. Open the official Highway Code guidance in a new window.
A hire car is a rental car that may be paid for by an insurance company while your car's off the road or stolen and not recovered.
I
An immobiliser is either:
- an electronic anti-theft device designed to stop the engine from starting. Usually activated when you remove the ignition key or ignition device from the vehicle. Usually pre-fitted by the manufacturer but may be retro-fitted and supplied with certificate of installation; or,
- a manual or mechanical immobiliser, like a steering wheel lock or gear stick lock. These are physical pieces of equipment fitted to important parts of the car to prevent their use.
In-car equipment covers entertainment systems permanently fitted in the car; it means audio equipment, DVD player, television, satellite navigation equipment, a permanently fitted car phone and includes dashboard or windscreen mounted cameras.
L
Legal expenses cover is insurance against any fees you might have to pay if you consult or hire a lawyer, or if you're involved in other legal proceedings. It’s sometimes included with a policy or may be available as an optional extra, and is often offered with home or motor insurance.
M
The main driver is the person who uses the car the most; whether that’s for personal use or to get to and from the workplace, or any other place of business, duty or study.
A modified car is one that's been altered from its manufactured specification. This can relate to the performance or look of the vehicle and can also include modifications related to disabled driving equipment.
MOT is the Ministry of Transport test. It's an annual safety and roadworthiness test required for all UK-registered cars over three years old.
Cars used to be rated by insurance companies on a scale of 1 to 20. On 1 January 2010, a scale of 1 to 50 was introduced. The rating’s based on the engine size, repair costs, risk of theft, time from 0 to 60 miles per hour and top speed. Cars with a lower rating are usually cheaper to insure.
The Motor Insurers' Bureau is an organisation established in 1946 to compensate the victims of negligent uninsured and untraced motorists. Open MIB official site in a new window
N
Under the New Drivers Act, if you get six or more penalty points on your driving licence within two years of passing your test, the DVLA will revoke your licence and you'll need to reapply as a learner driver and re-sit your driving test.
No claim discount or no claim bonus gives you a reduced premium for not making a claim on your car insurance policy. The longer the period of no claim, the higher the discount. Note: it's a no claim bonus, rather than a no blame bonus. Also see ‘Protected no claim discount or bonus.’
O
An optional extra is additional cover you may wish to buy when you take out a policy.
P
Pass Plus is a practical training course aimed at new drivers to help improve their skills and drive more safely.
Personal accident benefit is a policy or a feature of a policy that pays a specified sum if you're injured in an accident. The payout may be weekly, for a set period, or a lump sum.
Your policy is a formal, legally-binding contract of insurance that includes the terms of your cover.
A premium is the amount you pay for your plan or policy. The frequency depends on the type of cover you have it could be a single 'one-off' payment, monthly Direct Debit, or a yearly sum.
Your no claim discount (NCD) or bonus gives you a reduced premium for not making a claim on your car insurance policy. The longer the period of no claim, the higher the discount. If you have a minimum of four years NCD, you can guarantee it so it’ll be protected for the duration of your policy, no matter how many claims you make. It’s worth pointing out, though, protecting your no claim discount doesn't necessarily mean your premium won't increase in price.
R
The registered keeper of a vehicle is the person recorded by the DVLA as being liable for licensing it, declaring it off the public road (SORN) and who the police would contact about motoring and parking offences. The registered keeper is not necessarily the legal owner of the vehicle.
A renewal date is the date your policy will end unless you renew it and pay the appropriate premium to keep your cover.
A renewal notice is a letter or email we’ll send at least 21 days before your annual policy is due for renewal and set to expire.
S
A Statutory Off Road Notification is a declaration by the registered keeper that a vehicle isn't taxed because it's not being kept or used on a public road, e.g. if it’s in a garage, on a drive or on private land.
T
A tracking device is a security feature that can help the police find your car if it's stolen.
U
If a motor accident was the fault of a third party, we'll try to recover your uninsured losses such as policy excess, loss of use, and the cost of repairs and alternative transport, etc.
V
You may be able to specify a higher excess, known as a voluntary excess, in order to reduce your premium. An excess is the amount you agree to pay towards an insurance claim yourself and is normally collected by the repairer or deducted from the total loss amount if your car is written off.
W
Windscreen cover is breakage or damage insurance cover for your car's windscreen and windows.
A vehicle may be written off because it's either not repairable, unsafe to repair or would cost more to repair than to replace.