Glossary

Claim:
A request to redeem, in the form of a car repair/ replacement, your insurance policy.

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What are the principles Motor Insurance is built upon?
During the process of applying for motor insurance you will be asked for many details ranging from personal details to location and security based questions. As with all insurance you are well advised to answer any and all questions as honestly as possible in order to ensure any claims are fully met by your insurance company in the event of an accident.
What to do if you have an accident
In many circumstances you will not be able to prevent an accident, especially if the accident is not your fault. If you are involved in an accident, there are several steps you need to undertake.
How do I claim if the accident involves a third party?
In insurance terminology, a third party is defined as anyone else involved in an accident who is not the policy holder. Under UK law you are required at all times to have a minimum of act only third party insurance, but in reality most insurers only offer full third party insurance. This insurance will ONLY protect any damage done to third parties involved in an accident, not to your own vehicle. There is also the question of personal compensation, usually this is also covered by a third party policy, if in doubt check your policy documents.
How can I lower my Motor insurance premiums?
Many factors influence the premiums of your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote - some of which will affect your premium and some will not. To name a few of the important variables, the vehicle you drive, your gender and your age are all important to the insurer whilst they calculate your quote. Below we have discussed several of these key variables that are within the policyholder's control.
How your premium is calculated
The main factors influencing the cost of your insurance policy are:
Comprehensive Cover:
Provides the most ‘comprehensive’ form of cover available, it will include cover for damage to your vehicle and yourself in the event of accident.

Cover:
Refers to the risks that your insurance policy will protect you against.

Excess:
This is the amount that you will personally be expected to pay in the event of a claim.

Exclusion:
an uncovered risk, something which is not covered by your car insurance policy. An exclusion could be almost anything from specific people to specific use of your vehicle.

Green Card:
This document proves that your vehicle meets the minimum car insurance requirement for the country you are visiting outside of the UK. A green card is a worldwide recognised document and you can collect a 'green card' from your car insurance provider. NOTE make sure you request your green card well in advance of your trip.

Insurer:
This is the company which provides your insurance policy. They are also your point of contact in the event that you need to make an claim.

No Claims Bonus:
This is a percentage discount given to a driver on their original premium if they fail to make any claim during a set period (typically 10 or 12 months).

Policy:
This is the document which outlines the terms and conditions of the car insurance policy that you have purchased.

Policyholder:
This is the person who is insured by the policy.

Premium:
This term refers to the monthly price you pay for your car insurance policy.

Third Party:
This refers to any other individual involved in a car accident that is not within your vehicle. This could include, another car, cyclist, pedestrian or even the tenant a house you hit.

Third Party Cover:
Provides covers any liability you may have to a third party if you are involved in an accident, but provides no cover for you or your vehicle

Third Party, Fire and Theft Cover:
Similar to Third Party Cover, this type of policy covers any liability you may have to a third party if you are involved in an accident, but provides no cover for you or your vehicle. In addition it will provide compensation for your vehicle if it is damaged in the event of a theft or through fire.

Voluntary Excess:
This is the amount that you have specified upon your policy as the additional value, on top of the compulsory excess, that you are prepared to pay in the event of a claim. Agreement with your provider to pay a greater voluntary excess, in the event of a claim, will reduce your premiums.