| ABI | Association of British Insurers – this is the trade association that represents UK insurance companies |
| Act of god | An event that is usually a natural occurrence, such as lightning strike or storm where an individual or business cannot be held responsible. In many circumstances, you may not be able to claim against these instances, so check with your insurer. |
| Annual business mileage | The amount of miles you do in a year directly linked to your employment or a business you run. |
| Annual mileage | The amount of miles your vehicle will do in a year. Important to note this is not just your specific mileage (if you have an additional named driver / drivers). |
| Breakdown cover | Breakdown cover will attempt to repair your vehicle if it is stranded and recover it for you if it cannot be fixed. You can get a quote here. |
| Broker | An intermediary that offers insurance on behalf of different insurance companies. |
| Certificate of Motor Insurance | An important document which provides legal evidence of your insurance – you may be asked for this in the event of a claim or when you switch insurer. |
| Claim | Any report of an incident when a policy holder requests compensation |
| Comprehensive cover | Covers accidental damage to the driver’s vehicle in addition to third party fire and theft cover. |
| Conviction code | The four-digit code given to a motorist when they commit an offence and receive a motoring conviction, such as SP30 (given to drivers caught exceeding a 30mph speed limit. In Northern Ireland, code may be longer than four digits |
| Cover type | The type of cover taken out on the vehicle such as: Third Party Only, Third Party Fire and Theft, Comprehensive/Fully Comprehensive. |
| Defaqto | Defaqto is an independent researcher of financial products which grades insurance products. The highest possible rating id 5*. The more comprehensive the cover, the higher the star rating. |
| Endorsement | A change made to a policy during the term of cover that means the original cover terms need an amendment e.g. change of vehicle. |
| Excess(es) | Excess comes in two forms, voluntary and compulsory. The collective figure must be paid in order to make a claim. Typically, by offering to pay a higher voluntary excess you reduce the price of your premium. |
| Exclusions | Insurance companies won't pay out in the event of some circumstances. These exclusions will be set out in your policy documents and are worth checking. |
| Fault claim | A fault claim is any claim for which an insurer is unable to recover their cost against a third party, regardless of who caused the incident. |
| Green card | A green card proves that your insurance covers the minimum cover in the country you’re driving – outside of the EU – and are provided by your insurer. |
| Immobiliser | An electronic security device to prevent thieves from stealing a car even if they gain entry. The immobiliser forms part of the engine control unit (ECU), and prevents the car from being started unless it recognises signals from a transponder in the key. |
| Insurance Premium Tax | Tax which is included in the price of your insurance. |
| Insured value | The amount which your vehicle is insured for. Typically, a higher insured value will mean a higher premium. |
| Knock-for-knock | An agreement between insurers to cover the costs of damage to their own policy holders vehicle - regardless of who is to blame. |
| Main driver | The person who drives the most amount of miles in the vehicle. |
| Market value | The cost of replacing the car with another alomost identical model in the event of significant damage of a write-off. |
| Modifications | Any chages made to your vehicle which are not classed as standard, including body kits, new alloys, exhausts ect. as well as changes to engine set ups and configurations |
| No claims bonus/discount | Discount for people who haven't claimed against an insurance policy for a set number of years. |
| Non-fault claim | A non-fault claim is any claim for which the insurer has been able to recover all of their costs against a third party. |
| Registered keeper | The person who is keeping the vehicle. This isn't necessarily the person who paid for it. |
| Risk Address | Where the car is kept overnight |
| SORN | SORN stands for Statutory Off Road Notification and you need to complete one if you are not using your car on the road (so don't need to pay tax) |
| Telematics | Telematics or 'black box' is technology that monitors how a car is driven and when it’s driven. This information can help to reduce a policy holder’s premium if they’re deemed to be a safe driver |
| Third Party | A person involved in a claim who is neither the policyholder nor the insurer. |
| Third Party, Fire and Theft | Covers fire and theft of the vehicle in addition to third party only cover. |
| Total loss | In insurance, a total loss or write-off is when an insurer deems the repair cost of a damaged car exceeds the market value of the vehicle. |
| Tracker | An electronic device installed in a vehicle enabling owners or third parties to track the location and movement of a vehicle – particularly useful in the event of a theft. |
| Underwriter | The company providing the insurance cover under your policy. |
| Voluntary excess | You can usually choose to pay more towards the cost of a claim. This generally reduces the price of your premium. |
| Write off | A vehicle damaged beyond repair or so badly damaged that it would cost more to repair than the value of the vehicle. |
