Glossary of insurance terms

Here at 1st Quote we’ve compiled a glossary of common insurance terms to help you through the process of buying insurance online. Remember if you have any further questions don’t hesitate to ASK HELEN.

This is the sole owner of a piece of property, such as a building, vehicle or piece of equipment.

Provides annual cover for multiple trips. Most insurers provide cover for an unlimited number of trips during the year but a few restrict the total number of days of travel permitted per annum. Check the policy before purchasing.

Document summarising the insurance cover provided.

To be eligible for a quote, you must not have had more than a certain number of claims over a certain period of time (e.g. 3 in 5 years means three separate incidents over the past 5 years).

A comprehensive insurance policy includes any accidental damage to the vehicle in addition to cover against the risk of fire, theft, or a claim by a third party.

An amount that the insurer requires you to pay in the event of a claim.

4 in 5 years (for example)
Means, to be eligible for a quote, you must not have more than 4 driving convictions in the last 5 years.

'Up to 6 points' (for example)
Means, to be eligible for an Internet quote, you must not have more than 6 points on your driving licence.

Cover date

Date from which insurance cover applies. Cover cannot be backdated.

Cover note

A temporary certificate of insurance.

Disqualification

You may not be eligible for a quote if you have been disqualified from driving.

DVLA

Driver and Vehicle Licensing Authority. The UK body responsible for issuing driver and vehicle licenses.

House Ownership

The following definitions relate to buildings insurance only. You may still get a quote for contents insurance irrespective of who owns the building.

'Self' means you will only get a quote if the house is registered in your name.
'Family' means, you will only get a quote if you or a member of your family is the registered owner.
'Max. 2' (for example) means you will only get a quote if there are no more than 2 registered owners.
'No companies' means you will not get a quote if the property is owned by a company.

Immobiliser

A device used in most new vehicles to reduce the risk of theft.

Insurer

An insurance company or Lloyd's syndicate.

Keeper

The owner or named driver of the vehicle.

Main driver

The person who most frequently drives the vehicle.

Multiple quotes

You may be presented with a number of quotes giving you the ability to choose the product that best fits your needs.

No-claims bonus (NCB) / No-claims discount (NCD)

A percentage discount you are entitled to as a result of not making a claim. The NCB is dependent on the number of years that a claim hasn't been made.

Owner

Person who owns the vehicle.

Present value

The current market value of the vehicle. The present value represents the amount the vehicle would fetch in a private sale in the event of total loss. It does not mean sale price.

Points

Penalty points given for motoring offences.

Policy details

'Full' means that full policy details are available on screen.
'Summary' means that there is only a summary of the cover on the screen and you would have to contact the insurer for more details if required.

Policy document

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

Proposer

The person who has a contract with the insurer that is providing insurance cover. The proposer may or may not be the main driver.

Protected no-claims bonus

For a small additional premium you can maintain your NCB on renewal even if you have a claim.

Single Trip

This is a single trip beginning and ending in the UK. Most insurers impose a maximum length of trip.

Third party cover (TPO)

Covers your liabilities to other people (i.e. third parties). TPO does not cover the cost of damage to your own vehicle.

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.

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

For a small additional premium you can obtain cover for 'uninsured loss recovery'. This is an additional insurance policy which will pay for the cost of recovering losses (e.g. your compulsory excess) from a third party, provided the third party was to blame for the accident.

An amount that you agree to pay in the event of a claim, in return for a premium reduction. For example you may choose to pay the first £100 in the event of a claim. Voluntary excess is additional to and not included in compulsory excess. For example, if you have a £200 compulsory excess and £100 voluntary excess you will pay the first £300 of any claim.

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

Cost of repairing damage to your windscreen/windows 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.