Insurance - Car insurance

Car insurance jargon.

What is 'Comprehensive' cover?

Comprehensive insurance covers accidental damage to your vehicle in addition to fire and theft and any claim by third parties. Refer to your policy document for full details.

What is 'Third Party Fire & Theft' cover?

Third Party Fire & Theft insurance covers fire and theft of your vehicle and any claim by third parties. Refer to your policy document for full details.

What is 'Third Party Only' cover?

Third Party Only insurance covers any claim by third parties. This does not cover any damage to your own vehicle. Refer to your policy document for full details.

What is a tracker?

A tracker is an electronic device (normally fitted as an accessory after purchase of the vehicle) which emits a signal enabling law enforcement agencies to locate the car anywhere in the UK if it has been stolen.

How do I know what sort of immobiliser/tracker/alarm system my car has?

Most newer cars (being those up to 6 years old) come with some sort of alarm and/or immobiliser. Insurers will already have the details of the alarms and immobilisers that are fitted to newer cars. This is already built into their rating criteria.

If you have an older car you may have fitted a specific alarm. All alarms and immobilisers are categorised and insurers may give discounts depending upon the make and model of alarm or immobiliser.

When does my cover start?

Your insurance starts from the time that you purchase a policy. You cannot backdate the policy inception date. You can choose an inception date up to 30 days in advance of the day on which you obtained the quotation.

Who is the main driver?

The main driver is the person who uses the vehicle the most.

What is the difference between the 'owner' and 'registered keeper'?

There may be a reason for the owner and registered keeper to be different individuals. For example, you may use a car that is owned by someone else in which case you would be the registered keeper. Or you may own a vehicle that you allow your children to use and therefore the registered keeper would be one of your children.

What is a voluntary excess?

A voluntary excess is the amount that you choose to bear in addition to the policy excess that has to be paid in the event of a claim. Young drivers may have to bear a higher policy excess. Please check your policy wording.

You can select the amount of voluntary excess you are prepared to bear. If you decide to bear an additional (voluntary) excess it may mean that your premium will reduce.

What is a policy excess?

The policy excess is an amount imposed by the insurance company that you are required to contribute in the event of a claim. The policy excess is frequently increased for younger drivers for accidental damage claims (refer to the policy wordings).

Any voluntary excess that you choose will be added to the policy excess and young drivers excess in the event of accidental damage claims. Your policy excess is shown on your 'Quote' page along with any voluntary excess. Please check your policy wording.

What is a younger driver's excess?

Many insurers impose higher excesses for younger drivers as they are considered to be a higher risk.

What is a motor schedule?

A motor schedule is a document that shows details of your policy, excesses, endorsements and premium that is specific to your insurance and should be read in conjunction with your insurer's policy wording.

What is a No Claims Bonus?

A No Claims Bonus (or NCB) is the discount that you have earned on a previous insurance policy. Insurers give discounts determined by the number of years that you have not had claims.

The No Claims Bonus must be earned separately on each policy or on each car.

What is ULR?

ULR or Uninsured Loss Recovery is an additional insurance protection that you should consider purchasing. Where a motor accident was the fault of a third party, our insurers will attempt to recover your uninsured losses including repair costs, policy excess, loss of use, hire costs of alternative vehicle, transport costs, etc.

What is Uninsured Loss Recovery?

Uninsured Loss Recovery or ULR is an additional insurance protection that should consider purchasing. Where a motor accident was the fault of a third party, our insurers will attempt to recover your uninsured losses including repair costs, policy excess, loss of use, hire costs of alternative vehicle, transport costs, etc.

What is Insurance Premium Tax?

Insurance Premium Tax or IPT is the tax imposed by the Government on all insurance sold in the UK (other than some specialist areas). This tax is currently 5% on Motor and all other personal lines apart from Travel and Domestic Appliance Extended Warranty, which are both at 17.5%.

What is IPT?

IPT or Insurance Premium Tax is the tax imposed by the Government on all insurance sold in the UK (other than some specialist areas). This tax is currently 5% on Motor and all other personal lines apart from Travel and Domestic Appliance Extended Warranty, which are both at 17.5%.

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