Understanding insurance terminology
Understanding the language and terminology used when purchasing an insurance policy can often be confusing. Please refer to our glossary of terms and descriptions detailed below designed to help explain what some of the common insurance terms mean. We hope that you find this useful.
These are any changes (including factory-fitted optional extras) that make your car different from the standard vehicle specification. Examples would be alloy wheels, spoilers, engine modifications etc.
Imports are vehicles which were, or are, being brought into the country. This does not include vehicles that are brought into the UK from UK dealers. Generally speaking these fall into two categories:
- UK specification vehicles - these are brought in from abroad (normally Europe) but match UK specification.
- Non UK specification - these are brought in from abroad (normally outside of Europe) but don't match current UK specifications.
- Main driver - the person who uses the vehicle the most.
- UK residency date - the time that you have been continuously resident in the UK prior to this insurance policy.
- Annual mileage - approximately how many miles you think your car will travel in total during a 12 month period from the policy start date.
- Non-motoring convictions - criminal convictions which you or other drivers under the policy may have and which are not spent. If you are unsure about whether you need to disclose one or not then you should and we will ignore it if it is not relevant.
- Motoring offences - traffic offences such as speeding and drink-driving and will normally be found on your licence.
- Accidents or claims - including any incident which could give rise to a claim.
- Fault/non-fault claim - what's the difference? Unfortunately, fault claims are not just those where you accept that you are to blame. The terms fault and non-fault relate to whether the insurer was able to recover all their costs from someone else. If they did not, then it is a fault claim even if you aren't necessarily to blame. For example, a theft claim is regarded as fault. Regardless of this fault / non-fault distinction, glass claims are considered to be non-fault if they occur without any other claim being made.
Uninsured driver promise
If you make a claim for damage sustained to your car following an accident where it is established that the driver of the other vehicle was not insured to drive that vehicle, then we promise to refund your excess and reinstate your No Claims Discount, provided:
- The accident is not your fault; and
- You are able to supply the make, model and registration number of the responsible vehicle; and
- You are able to supply the responsible driver's name and address: and
- Where possible, supply details of independent witnesses to assist in confirming who is at fault.
You may be required to pay your excess whilst we investigate the circumstances of the accident and if these are still ongoing when your policy falls due for renewal, then we may have to reduce your No Claims Discount. However, once we have identified the uninsured driver and established that they were to blame for the accident, we will refund the cost of your excess, reinstate your No Claims Discount and refund any additional premium you had to pay to us for any temporary loss of your No Claims Discount.
Different levels of cover
Third Party Only - no cover for your vehicle, cover for damage or injury you may cause to someone else and/or their property only.
Third Party Fire & Theft – as per Third Party Only and also covers your vehicle for damage caused by theft, attempted theft and/or fire.
Comprehensive – as per Third Party Fire & Theft and also covers your vehicle for damage caused accidentally or maliciously - as a result of an accident for example.
Different use types
Social, domestic and pleasure - covers you for normal day to day driving, such as driving to visit family or friends, or shopping. Excludes driving to / from work.
Social, domestic, pleasure and commuting - use for social purposes and for travelling to / from one permanent place of work (including part of a journey to work such as driving to a train / bus station).
Business use by you - in addition to social and commuting, this allows you to use the vehicle in connection with your occupation but excludes use for hire and reward (taxiing) and commercial travelling (door to door selling).
Business use by you and spouse - in addition to social and commuting, this allows both you and your spouse (or civil partner) to use the vehicle in connection with your respective occupations but excludes use for hire and reward (taxiing) and commercial travelling (door to door selling).
Your business use for all drivers - in addition to social and commuting, this allows all drivers to use the vehicle in connection with your occupation, but excludes use for hire and reward (taxiing) and commercial travelling (door to door selling). If the additional driver has an additional occupation then using your vehicle in connection with his/her business is excluded.
Personal business use for you and all drivers - in addition to social and commuting, this allows all drivers to use the vehicle in connection with your respective occupations but excludes use for hire and reward (taxiing) and commercial travelling (door to door selling).
Commercial travelling - in addition to social and commuting, this allows all drivers to use the vehicle in connection with your occupation and includes use whilst the vehicle is engaged in commercial travelling (door to door selling). Hire and reward (taxiing) is still excluded.
The amount that you voluntarily choose to pay towards the cost of a claim. This is in addition to any compulsory excess that will also apply to your policy. If you choose a voluntary excess you will receive a discount in premium.
No claims discount
No claims discount (NCD) is the discount that you have earned for the number of consecutive years that you have not made a claim. For more information about how no claims discount and protected no claims discount work, please click here.
Your insurance documents
Statement of fact
The Statement of Fact is a record of the information you give us, on which your policy is based. A paper copy of this will be sent to you once you have accepted your policy. It is your responsibility to check this document and inform us of any errors. (Please see our Terms & Conditions for more details).
The document which identifies the policyholder and sets out details of the cover your policy provides.
Certificate of motor insurance
This document provides evidence that you have taken out the insurance you must have by law. It identifies who can drive your vehicle and the purposes for which your vehicle can be used.