Advanced Driving Qualification
An advanced driving qualification improves a driver’s road skills and in most circumstances will bring down car insurance premiums.
Additional Drivers
Additional drivers are drivers named on a car insurance policy in addition to the Policyholder.
Amendment
A change to your original policy. For example, if you increase the amount of mileage you will be doing throughout the year.
Ancillaries
Insurance companies will often offer extra levels of cover for an additional premium. In some cases these optional extras are extensions of cover already included in the insurance. For car insurance typical optional extras are legal cover or breakdown cover.
Annual mileage / business mileage
Annual mileage is the total mileage you do in a year.
Annual business mileage is the mileage you use in connection with your employment or business.
Annual premium
The price you are quoted by an insurance company for your insurance.
Approved Repairer
A garage or bodyshop recommended by your insurance company for car repairs covered by your insurance policy.
Broker
A broker is an independent intermediary who sells one or a range of policies from different insurance companies.
Cancellation
Ending an insurance policy before it is due to finish.
Your insurer may charge you if you want to cancel your policy before it is due to end. There may be a cancellation fee to pay as well as a percentage of your premium. Your insurer's cancellation rates can usually be found in your policy booklet. You will need to phone your insurer to cancel your policy.
Certificate of insurance
A document or certificate issued by insurance companies as proof that insurance is in force, to meet the requirements of the law.
Claim
It is a request or demand for payment under the terms of your policy.
For example, if you have an accident or if someone steals your vehicle and it needs to be repaired or replaced, you make a claim against your insurance policy.
There are two types of claim you need to be aware of:
You are deemed to have caused an accident or incident, or your insurance company cannot recover all their costs from the other party.
Some claims will always be classed as fault claims, for example when your car has been broken into and items have been stolen from it. Although you haven't done anything wrong, there is no one to recover the cost of the stolen items from and the claim becomes a fault claim.
You have been involved in an accident or incident and your insurance company can recover all their costs from the third party.
Claims history
Insurance companies will look at your claims history (how many claims you have made and what you have claimed for) when deciding on what to charge for your insurance premium or renewal premium. Your claims history will help paint a picture of the potential risk you pose as a customer.
Conviction code
When someone commits a motoring offence and receives a motoring conviction, a 4 digit code is put on their licence by the Driving and Vehicle Licensing Agency (DVLA)†.
For example SP30 is the conviction code for exceeding the statutory speed limit on a public road.
Cover note
A document showing temporary proof of cover for a motorcar, van or motorcycle policy, while the policy and certificate are being prepared by the insurer.
Cover types
Covers any claim by third parties. This does not cover damage to the driver's own vehicle.
Covers accidental damage to the driver's vehicle in addition to third party fire and theft cover.
Driving other cars (DOC)
Using another car you don't have insurance cover for. Subject to certain conditions, some insurers will allow someone not insured on a car to drive it in an emergency. If your policy includes DOC then it will be stated on your Certificate of Insurance.
If you do have this cover, the following usually applies:
It is third party only cover on another vehicle, you won't be covered for any damage to the car you are driving.
The car must be currently insured by another party.
You have the owners' permission to drive.
You can only use it for cars that do not belong to you; or
Vehicles not hired to you under a hire purchase agreement.
It is for emergency cover use only, not for day to day use.
Endorsement
A change made to an insurance policy which becomes part of the policy. For example if you change your car, the vehicle details will be changed and your new car is insured instead of your old car.
Here’s our guide to making sense of motor insurance terminology, helping you reduce what can be a very complex and confusing subject:
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