Car Insurance Glossary

What do we mean by…?

Here are the meanings of some of the words used on this website. This glossary is here only as a general guideline designed to help you with terms you might not be familiar with. If you need to understand the term as it applies to your specific circumstances then we recommend you refer to your relevant policy wording.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

ABS

Anti-lock braking system.

ABI

Association of British Insurers. 95% of British insurance companies are members.

Annual policy

This is a policy that lasts for a year. For a competitive car insurance quote click here.  

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Approved Workshop

A vehicle service agent and repairer who has been assessed and approved by the Insurer or by a professional body.

Breakdown cover

An optional extra which can be purchased alongside your car insurance policy and which brings a qualified mechanic to your assistance if your vehicle should breakdown. You could even gain assistance if your car won’t start at home.  Breakdown cover is available through its4me.co.uk for as little as £72 a year.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Broker

An individual or firm that searches insurance companies to find an insurance policy for you. For a competitive car insurance quote click here.

Certificate of Motor Insurance

The proof issued by the Insurance company that your vehicle is insured, as required by law.

Comprehensive cover

The widest ranging level of car insurance cover you can buy.  In addition to the cover provided by Third Party Fire and Theft insurance, this also covers your car  against  damage caused by an accident or someone else, whether you are at fault or not. For a competitive car insurance quote click here.  

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Compulsory Excess – See Excess and Voluntary Excess

The amount of any claim which the Insurer insists you must pay in the event of a claim.

Cosmetic Modification

Alterations to a vehicle which affect its appearance but not its performance such as customised paintwork.

Cover Note

A document which gives you temporary evidence that your vehicle is covered by the insurance.

Direct Debit

A way for a business to collect regular or occasional payments from customers. It is the most popular way for people to pay for services such as insurance. For a competitive car insurance quote click here.

Driver’s Legal Protection Cover

An optional extra insurance policy to run alongside your car insurance policy which covers you for legal costs incurred in recovering so-called ‘uninsured losses’. If you are involved in an accident which isn’t your fault, these can include everything from recovery of your excess and loss of earnings through to damage to your clothes and luggage. For a competitive car insurance quote click here.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

DVLA

Driver and Vehicle Licensing Agency – an executive agency of the Department of Transport which is responsible, among other things, for issuing driving licences and vehicle registration documents.

Driving Licence

The legal approval needed to drive a motor vehicle.

Effective date

The date from which you are covered by your car insurance policy.

Excess – See Compulsory Excess and Voluntary Excess

The amount you will have to pay if your car is lost, stolen or damaged, irrespective of fault. You may be entitled to seek recovery from a responsible party in the event of an accident, which was not your fault.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Exclusions

Circumstances which are not covered under a car insurance policy.

Full Driving Licence

The Licence issued by the DVLA to drivers who have passed their driving test.

IPT

Insurance Premium Tax. A tax charged by the government, worked out as a percentage of your insurance premiums.

Insurance Schedule

The document that describes details of the cover you have and information that you have supplied to your insurer.

Insured

The person who has taken out the car insurance policy. For a competitive car insurance quote click here.

Insurer

An organisation which issues a car insurance policy in exchange for a premium and pays any claims arising. For a competitive car insurance quote click here.

Legal Liability

The obligation to recompense others because of your negligence.

Limits

The maximum that your insurers will pay in the event of a claim. For a competitive car insurance quote click here.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Medical Condition

This means any condition which you are required to notify to the DVLA.

MOT

An annual test required for motor vehicles once they reach 3 years old to prove they are road worthy.

Motoring Convictions

Offences such as speeding which are detailed on your driving licence. You will need to notify your insurer of any convictions in the last 5 years, even though these may have been removed from your licence.  You can still get a quote with its4me, for a competitive car insurance quote click here.

Named driver

A driver that is insured on your policy, but who is not the main driver of the car. You can select up to three other drivers on your policy if you insure with its4me.co.uk. For a competitive car insurance quote click here.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

No Claims Bonus

A discount, offered by your car insurance company, as a reward for you not making a claim.

Period of Insurance

The time covered by a policy and shown in the Schedule. For a competitive car insurance quote click here.

Policy

The document which details what is covered and outlines the circumstances under which a claim will be paid and the conditions governing any payment. A policy is a contract which is binding on both the customer and the Insurer. For a competitive car insurance quote click here.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Premium

The amount you will need to pay to an Insurer to be covered by the car insurance.  For a competitive car insurance quote click here.

Protected No-Claims Bonus

If you have 5 or more years no claims bonus, you may be able to pay an extra amount so you may not necessarily lose your no claims bonus if you make a claim.

For a competitive car insurance quote click here.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Provisional Driving Licence

The driving licence issued by the DVLA to learner drivers before they have passed their driving test. You must be supervised by a person who has held a valid Full Driving Licence for 3 years or more and is aged over 21 years old, to drive a car with a Provisional Driving Licence.

Registered Keeper

This is not necessarily the legal owner of a car. It is the person recorded by the DVLA as being liable for the licensing of the vehicle or declaring it off the public road and also the person to whom the police would contact about motoring and parking offences. The actual legal owner could be the person or company who bought the car.

Renewal

Almost all car insurance policies run for a year. At the end of this period, it can usually be continued (‘renewed’) or transferred to a different Insurer. For details on how to renew your policy visit www.its4me.co.uk/renew-my-policy.asp

Road Tax

Vehicle Excise Duty or road tax as it is more commonly known is a tax which must be paid on motor vehicles before they are allowed on the road.

Third Party, Fire & Theft

In addition to the cover provided by third party only cover , this also pays you compensation if your vehicle is stolen or destroyed by fire (subject to Policy terms). For a competitive car insurance quote click here.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Tracker

An electronic device that you can fit to your car so that it can be tracked if it is stolen.

Voluntary excess

You can arrange to pay a higher level of excess in return for lower premiums. A voluntary excess applies in addition to any compulsory excess.

Wheel clamp

A means of stopping a wheel on a vehicle from turning. Used as a security device and also to hold illegally parked cars.

Write-off

This means when damage is so extensive that your car insurance company decides that it is just not worth repairing your car and you will receive a settlement instead.