Glossary

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

Hot Topics

What types of Motor Insurance Policy are available?
Since 1930 it has been a legal requirement for all drivers of motor vehicles to be covered by insurance for a minimum of third party claims, that means you have to be insured against accidents that are caused by you and have damaged a ‘third party’s’ vehicle.
What is Third party only Insurance?
If you want yourself to be personally covered against accident or your vehicle to be covered you should consider a more comprehensive form of car insurance.
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.
Why do some Motor insurance specialise in High Performance Motor Insurance?
When you are thinking of buying a high performance car, what you may not have thought about is how much your insurance premiums would be when you come to insure the vehicle.
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.