Car insurance glossary
Accessory
Any extra item fitted to your vehicle whether the manufacturer does it or not.
Accident
An occurrence that is neither expected nor planned by you. It can include a series of occurrences arising out of one event.
Agreed Value
The amount the insurer agrees to insure your vehicle for. This amount is normally shown on your current certificate of insurance. Insurers normally request that you notify them if you want to include any accessory that is not supplied as standard equipment.
Choice of repairer
When repairs to your car are required the insurer may stipulate you use one of their nominated repairers. However, in most cases the insurer will request a couple of quotes of which one may be from your own choice of repairer.
Comprehensive Insurance
This covers the vehicle for damage that occurs to it as the result of an accident. The liability section of the policy covers damage that the vehicle causes to a third party's vehicle or property.
Driver Restriction
Many insurance companies will place restrictions on what vehicles and which drivers they will and won't cover. For example many insurers won't cover certain types of high performance vehicles, especially if the driver is under a certain age.
Emergency Repairs
Any essential minor repairs to be made before you are able to drive your car safely from the accident or event.
Emergency Transport
Emergency transport may be provided for if you are involved in an accident while away from home and you are unable to drive your vehicle. You must be a specified distance away from home to qualify for emergency transport.
Faultless No-claim Bonus
In most cases insurers will allow you to maintain your no-claim bonus if you are involved in an accident that is not your fault and you are able to identify the 'at fault' driver by providing their name, address and registration details.
Financier
Means a licensed credit provider, bank, building society or credit union etc.
Free car hire after loss
Most comprehensive insurance polices cover the cost of a hire car for up to 14 days if your vehicle is stolen.
Legal Liability - Car Insurance
Is for damage your vehicle causes to someone else's property when you are found to be at fault. It also covers you for any legal costs you have to pay as a result of the accident.
Lifetime No-claim Bonus
While almost all insurance companies offer no-claim bonus schemes, only a very small number allow you to retain this for life. The insurer may establish criteria about how long you need to have held a maximum no-claim bonus for before you are entitled to it for life. If you receive this lifetime no-claim bonus any claims you make will not affect your premium.
Limit of cover
The amount of insurance cover you have purchased for your vehicle.
Malicious Damage
Damage done to your property by someone else with intent and without your consent.
Market Value
The insurer's assessment of the value of your vehicle (using market rates in accordance with the age and condition of your vehicle) at the time of the incident you are claiming for. It normally excludes any accessories unless noted on the policy.
Modification
An alteration to your vehicle's standard body, engine, suspension, wheels or paintwork that may affect its value, safety or performance.
Monthly Instalment
The amount you must pay each month when you have chosen to pay your premium by instalments.
New vehicle after total loss
If you purchased your vehicle new and it is in its first year of registration most insurers will replace your vehicle with the same model if you suffer total loss. A small number of insurers will replace your vehicle with the same model if it is up to two years old. If you suffer total loss on an older vehicle your insurer will either pay you an agreed or market value.
No-claim Bonus
This is a discount granted
to a customer to reward them for not having made any claims. It usually
increases every year until it reaches the maximum no-claim bonus
discount allowed.
Occurrence
An event (including continuous or repeated exposure to substantially the same general conditions) which results in personal injury or property damage that was not intended, expected or planned by you or the driver of your vehicle.
Period of insurance
Means the period that the insurer covers you for under the policy. The start and end date of this period will be shown on your policy schedule.
Personal Items Cover
Some comprehensive policies offer cover for personal items held in your vehicle that suffer damage as a result of an accident, fire, weather conditions or other event. This cover is usually limited and may be restricted to damage caused in an accident only.
Policy Schedule/Certificate of Insurance
The document that sets out the details of your insurance cover. It includes the premium, the amount covered, the excesses applicable and/or any endorsements to your policy.
Premium
The amount you pay for your insurance. It is shown on your current certificate of insurance. It is different from any excess, which you only pay when making a claim.
Private Use
Means your car can be used: ·for social, domestic and leisure purposes. ·in connection with repair or servicing. ·for unpaid learner-driver instruction. ·for test-driving or demonstration for sale. ·for a private car pool arrangement. ·for driving to and from work. ·in connection with your occupation as long as your occupation is not one that substantially entails driving eg courier, travelling salesperson, real estate agent, etc (the insurer should provide details of this).
Protected No-claim Bonus
An insurer may offer you a protected maximum no-claim bonus in one of two ways. They may reward you for holding a maximum no-claim bonus by allowing you to make one 'at fault' claim in the insurance period without it affecting your no-claim bonus. Some insurers allow you to pay additional premium to "protect" your maximum no-claim bonus from one 'at fault' claim in the insurance period. Some insurers allow you to protect your ordinary no-claim bonus ie it doesn't have to be a maximum no-claim bonus.
Standard Equipment
The equipment originally fitted to your vehicle at the time of manufacture. It does not include any options, accessories or modifications.
Substitute Vehicle
The vehicle you are driving because your usual vehicle is undriveable due to damage.
Third Party Fire and Theft Insurance
This covers the damage that the insured vehicle causes to a third party's vehicle or property as well as cover for loss or damage to the insured vehicle as a result of fire or theft. Limited cover is sometimes provided for damage to the insured vehicle if in an accident which is found not to be the driver's fault and the 'at fault' driver has no insurance and can be identified.
Third Party Property Damage Insurance
This covers the damage that the insured vehicle causes to a third party's vehicle or property. Limited cover is sometimes provided for damage to the insured vehicle if in an accident which is found not to be the driver's fault and the 'at fault' driver has no insurance and can be identified.
Total Loss
Means it is uneconomical to repair your vehicle for any reason.
Towing Costs
The cost of having your vehicle towed to a repairer or place of safety if it cannot be driven safely away from the accident scene.
Uninsured Motorist Cover
This is limited cover usually provided under either a third party property damage policy or a third party fire and theft policy. The policy will provide cover if the accident was found to be caused by the other driver, the other driver is uninsured and you are able to provide the other driver's identification details.
Vehicle
A motor vehicle (and sometimes a motor cycle) that is either registered for use on a public street or is in a condition that complies with registration requirements. It includes any accessory attached to that vehicle.
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Posts: 16410
Reply #16410 on : Tue February 07, 2012, 08:00:36
Posts: 16410
Reply #16409 on : Tue February 07, 2012, 07:59:48
Posts: 16410
Reply #16408 on : Tue February 07, 2012, 07:58:43
Posts: 16410
Reply #16407 on : Tue February 07, 2012, 07:17:19