Commonly Used Terms

The term is used to describe a further premium payable by the insured as a result of a policy amendment, that may have increased the risk than proposed at the inception of the policy.

One who investigates claims on behalf of insurers (claims adjuster or loss adjuster).

Early termination of a policy. Some insurers have a notice period in which a policy may be cancelled. In most common cases, a return premium will be issued to the insured by the insurer. Broker fees are always retained in an event of cancellation.

The annual document issued to confirm cover. This is your proof that your car is insured and is valid for the entire policy term. Some insurers will post you a physical copy, whereas some may send it to you via email.

A commission is charged within the annual premium by a broker to execute transactions or provide specialized services on behalf of the insurer.

Can be found at the start of an insurance policy document; it is used to summarise the most important information specific to the policy taken out.

An optional inclusion of your insurance policy that will extend cover to permit a prospective purchaser of your vehicle to test drive the vehicle and be covered prior to purchase. Terms and conditions apply to this extension and you should refer to your Policy Booklet for further information.

Protects employers against the cost of compensation claims which derive from an employee injury or disease, sustained during the course of their employment.

Excess is the amount of money that you pay in the event of a claim, before you’re given your pay-out by the insurer. There are two types of excess: Compulsory excess is an amount that you have to pay. Voluntary excess is an amount you set that is added to your compulsory excess. This often results in cheaper insurance costs, but means you get less back if you make a claim.

An optional product that can be purchased alongside your insurance policy to allow to be reimbursed your excess payment in the event of a fault claim. Terms and conditions apply to this extension and you should refer to your Policy Booklet for further information.

A payment made where there is no contractual obligation to do so. It is a Latin word, which means "out of kindness".

A term used to describe the requirement of Fair Presentation is to share all material facts, accurately and in good faith.

This is an independent non-governmental body that regulates companies that offer financial services, and consequently safeguards consumer rights. The body does so with statutory powers granted by the Financial Services and Markets Act 2000. Please click here for more information.

A bureau created by major insurance companies to manage the interests of policyholders whose complaints remain unresolved through normal company methods of communication. The service is accessible to all those holding personal cover with the insurers under the scheme. The decision of the Ombudsman is binding on the insurer, although the insured may appeal to the court if necessary. Please click here for more information.

An internationally recognised document that proves you’re insured to drive your car throughout Europe. Please click here for more information.

This describes the value of gross written premiums before deduction of brokerage and discounts.

Refers to the date that a policy begins. Also known as the start date or effective date, a policyholder has coverage in accordance with the terms of their insurance provider.

The term indemnity refers to an insurance policy that compensates an insured party for certain unexpected damages or losses up to a certain limit

An agent, broker or consultant.

The non-renewal of a policy

Provides assistance to recover uninsured losses (such as excess), medical losses or loss of earnings. Terms and conditions apply to this extension and you should refer to your Policy Booklet for further information.

An alternation made to your policy during the policy term. This may result in an addition to your policy and premium or a reduction to your policy and premium.

A group that aims to reimburse people who are left out of pocked from accidents involving uninsured drivers. The group also pays out to people who aren’t able to get their costs back from their insurer. Please click here for more information.

A term used to describe a specific cause of damage or injury. Insurance policies exist to cover you against specific perils like accidental damage, fire and theft.

On occasions, and dependant on the policy criteria, when a policy is cancelled mid-term, you’ll only be charged for the time you were covered by the insurer and not for the full policy term.

Is designed to protect your business against the cost of compensation claims if someone is injured by a product your business has manufactured, distributed or supplied. Terms and conditions apply to this extension and you should refer to your Policy Booklet for further information.

Designed to cover your business against the cost of compensation and legal claims if a member of the public is caused injury (including death) or their property has been damaged during your work. Terms and conditions apply to this extension and you should refer to your Policy Booklet for further information.

A term used in the event that a claim

The term is used to describe a reduced premium returned by the insured as a result of a policy amendment, that may have decreased the risk than proposed at the inception of the policy.

Is a discipline that intends to minimise the unforeseen circumstances that threaten the assets and earnings of a business.

This Act governs all car insurance in the UK. It first came into force in 1930 to make sure innocent victims of accidents weren’t left out of pocket. It was amended in 1972 to include passengers and again in 1988 to cover third-party property. Please click here for more information.

This document issued upon inception of your policy accompanies the Certificate of Insurance to confirm your insurance cover.

On occasions, and dependant on the policy criteria, when a policy is cancelled mid-term, you’ll be charged for the time you were covered by a monthly scale of charges, opposed to the time you were covered. More information can be located in your Policy Booklet.

Upon policy inception, this document is issued to you and it is used to summarise the most important information specific to the policy taken out. You must take consideration to review the document carefully and ensure you contact your insurer should you discover any inaccuracies.

The process that concludes whether cover will be offered, what is included in the policy provision and at what price.

A phrase that explains the amount deducted from claims payments on the basis of gradual deterioration of the property you own, due to age and usage.

Often included as an optional extra, cover can be extended to cover the cost of repair or replacement to windows and glass on your vehicle. An excess will apply for a claim. Terms and conditions apply to this extension and you should refer to your Policy Booklet for further information.

Is applied to statements or discussions that cannot be used as evidence in a court case. These statements are used in the course of genuine negotiations for a settlement.