Motor insurance advice

Certificate of insurance
A legal document which satisfies the requirements of the Road Traffic Act, and gives proof that insurance cover is in force.

Comprehensive cover
A comprehensive insurance policy that includes cover for accidental damage to your own vehicle, in addition to cover against the risk of fire, or theft or a claim by a third party (see third party cover and third party fire and theft below).

Compulsory excess
An amount which the insurer requires you to pay in the event of any one claim.

Cover date
Date from which insurance cover starts. Cover cannot be backdated: the cover date must be today or a date in the future.

Cover note
A temporary certificate of insurance.

Driving other cars extension
Many companies will automatically provide cover under your insurance to drive any other vehicle (not belonging to you), with the owner's permission, for Third Party Only cover.

DVLA (C)
Driver and Vehicle Licensing Authority (Centre). The organisation that issues and administers driving licences and vehicle registration documents.

Foreign use
Many companies will provide cover for driving abroad free of charge if visiting most EU countries. Further afield, a Green Card is required and a small charge may be made for this.

Immobiliser
A security device which immobilises a vehicle and reduces the risk of theft.

Indemnity
The legal principal which ensures you are restored to the same financial position after a loss as you were immediately prior to the loss. You will only be paid what the item is worth at the time of the loss.

Insurable interest
To insure something you must have an insurable interest in it (your own possessions or belongings) i.e. you must be responsible for the item and stand to lose financially if it is lost or damaged.

Insurer
An insurance company or Lloyd's syndicate.

Keeper
The person named as keeper of the vehicle on the vehicle registration document.

Main driver
The driver who uses the vehicle most. The main driver may or may not be the proposer (see below).

Market value
Present/market value is the current value of the vehicle. In the event of a total loss, the market value means the price the vehicle might reasonably have been expected to fetch in a private sale. It does not mean a dealer's showroom price.

Material facts
This is any information that you could give your Insurers that would influence the premium charged or whether they would take on a risk (eg convictions, address etc)

No Claims Bonus (NCB)
A percentage discount on your premium based on the number of years you have been insured without making a claim.

No Claims Discount (NCD)
Same as No Claims Bonus (NCB)

Non disclosure
Failure to disclose material facts could invalidate your insurance policy and in the event of a claim could mean your Insurers will not provide any cover.

Owner
The person who owns the vehicle (see also keeper).

Penalty points
Points given for motoring offences, recorded as part of endorsements on your driving license.

Policy booklet
A document providing details of the cover exclusions and conditions applying to the contract of insurance.

Policy schedule
A document that is read in conjunction with the policy booklet that provides details of the specific cover applicable to you (e.g. drivers and excesses on your policy).

Proposer
The person who is taking out the contract with the insurer who is providing insurance cover. The proposer does not have to be the main driver.

Protected No Claims Bonus
In the event of a claim arising, you can maintain your NCB at renewal even if you have a claim. Your policy will stipulate the number of claims allowed in a set period.

Recommended repairer
A network of garages approved by your Insurance Company where work is guaranteed and usually handled more quickly than taking to a non-approved repairer. You may be entitled to a courtesy car whilst your own is in for repair.

Road Traffic Act
Legislation that includes details of the minimum motor insurance cover required to drive a vehicle on the Public Highway in the British Isles.

Thatcham
The motor insurance research centre who check vehicle security devices and award a category (i.e. 1 or 2) to those that meet their requirements. A discount is often available if one of these devices is fitted to your vehicle by any garage approved by the VSIB.

Third party cover (TPO)
Covers your liabilities to other people (i.e. third parties). No damage to your own vehicle is covered.

Third Party Fire and Theft (TPF&T)
Covers your liabilities to other people (i.e. third parties) and the cost of losses if your vehicle is stolen or damaged as result of fire. No other damage to your own vehicle is covered.

Tracker
An electronic device fitted to your car that enables it to be located anywhere in the UK if stolen.

Uninsured Loss Recovery
This is an additional policy that will undertake the recovery of your uninsured losses (e.g. your compulsory excess) from a third party, provided the third party was to blame for the accident and you are able to provide their details.

Voluntary excess
An amount which you agree to pay in the event of any one claim in addition to any compulsory excess, usually in return for a premium reduction. For example, if you have a £200 compulsory excess and £100 voluntary excess you will pay the first £300 of any claim. (See also Compulsory excess).

VSIB
Vehicle Security Installation Board. The UK regulatory body responsible for the approval of vehicle security device installers.

Windscreen cover
Cost of repairing or replacing damaged windscreens and is normally included with comprehensive cover. For a small additional premium you may be able to obtain windscreen cover on Third Party or Third Party Fire and Theft policies.