When you’re first looking at car insurance it can seem like a minefield of complicated language. To help you cut through the jargon, we’ve created this glossary that explains what some of the commonly used words actually mean.
Please visit our legal page to see the full policy wording.
If you’re insured with insurethebox you are covered for damage to your car. Any repairs that are carried out by our approved UK repairers will be guaranteed, so it’s worth using the repairer we recommend.
Certificate of Motor Insurance
This is your proof that you have insurance and can legally drive a car. Once you’ve paid for your insurance, or have set up a direct debit for monthly payments, you’re issued a document that shows who is insured to drive your car and for what purposes the car can be used. You’ll find this in your online Portal.
This is the highest level of car insurance available. With comprehensive cover through insurethebox, you are covered for:
- injuries to yourself or other people
- damage to other people’s property
- fire damage and/or theft of your car
- accidental damage to your own car
- medical expenses (up to £200/person)
- loss of or damage to personal belonging in the car (up to £150)
- windscreen damage
Please visit our legal page to see the full cover details.
This is a clause that changes the terms of your policy. Any endorsements are shown in your schedule.
The excess is the amount of money you will have to pay towards any claim, even if the incident isn’t your fault. The amount of compulsory excess you have to pay is shown in your schedule. You can also choose your voluntary excess. Increasing this can reduce your premium, but remember that it will increase the amount you have to pay if you need to make a claim.
Fault or non-fault claim
This can be a little confusing. It doesn’t always refer to whether or not you are considered to be at blame, but whether your insurance company can recover costs from somebody else. For example, if your car is damaged in a car park and you can’t trace who hit you, this is sometimes classed as a fault claim. A non-fault claim is when you are not to blame for the incident and where your insurance company is able to recover the cost of the claim from somebody else.
This is how much the insurer will pay out if your car is damaged beyond repair. This could be the amount you stated the car is worth when taking out the policy or the current market value at the time of the claim – whichever is lower.
This is the person who drives your car most of the time, not necessarily the policyholder. It’s important to be honest here. If you put someone else as the main driver, such as your mum or dad, because it makes your car insurance cheaper, but you drive the car all the time, your insurance company could refuse to pay out if you make a claim. You could also receive a motoring conviction.
These are additions or changes to your car since it was produced. insurethebox does not provide cover for vehicles with modifications (other than by the manufacturer or for a disability). Please call Customer Service on 0333 103 0000 if you’re unsure whether a particular alteration to your car is classed as a modification.
No Claim Discount or No Claims Bonus (NCB)
If you don’t make any claims during the period of policy cover, you will be eligible for a No Claim Discount, or for an increase in your No Claim Discount, when you renew your policy. This may result in a decrease in your premium.
Owner and registered keeper
The Vehicle Owner is the person who has legal title to the car. The Registered Keeper is the person or organisation recorded by the Driver and Vehicle Licensing Agency as being the legal keeper of the car.
This is the person whose name is shown on the schedule and the Certificate of Motor Insurance. It’s not necessarily the main driver.
Your premium is the cost of your insurance policy and any extras that are shown on your schedule.
This is the document that forms part of your contract with the insurance company and confirms:
- period of policy cover
- name of the policyholder
- sections of the policy that apply
- any endorsements that vary the terms and conditions of the policy
This is the sum your insurer pays out when you make a claim.
Telematics insurance means using a telematics box (also known as a black box) to find out how safely you drive. The box records information such as speed, any heavy braking, time of day and breaks on long journeys to build a picture of your driving style. This information can then be used to give you a fairer price at renewal.
Third party only
This is the minimum amount of car insurance cover you must have by law. It doesn’t include any cover for damage to your own car but does cover:
- Injuries to other people
- Damage to other people’s property
- Accidents caused by your passengers or a driver named on your policy
Third party only cover is not offered by insurethebox.
Third party, fire and theft
This type of cover is the same as third party only with the addition of cover in case of fire or theft of your vehicle, provided it’s not your fault. Third party, fire and theft cover is not offered by insurethebox.
It’s the underwriter who decides whether or not to accept you as a risk and calculates your premium.
When you get a quote for insurance, you are asked what you use your car for.
Social, Domestic and Pleasure
This is regular day-to-day driving, such as going shopping and visiting friends, but not driving to work.
This type of cover protects you while driving to and from a permanent place of work or study, including driving to a train station where you park before getting the train to work.
You need this type of cover if you use your car in connection with your job or if you drive to different sites away from your permanent place of work.
This applies if you use the vehicle to seek or provide orders for goods or services.
At insurethebox we do not provide cover if your car is being used for hiring or for the carriage of passengers or goods for hire or reward, racing, pacemaking, speed testing or trials, motor rallies or trails, reliability testing or trials or competitions or for any use in connection with the Motor Trade other than by a member of the Motor Trade for the purposes of overhaul, upkeep or repair.