Motor Insurance Glossary of Insurance Terms
Business use
Use by the policyholder for their own business to travel to more than one place of work and between places of work.
Claim
An application to an Insurance Company for Compensation
Comprehensive cover
In addition to the cover provided under the Third party, fire and theft insurance a Comprehensive Policy extends to cover accidental damage to your own vehicle in the event of an accident.
In addition the Policy may provide additional benefits such as Personal Accident Benefits in the event of death or permanent disablement. Medical expenses, dental treatment. Loss or damage to personal property and audio equipment.
The additional benefits vary significantly between policies there are different specific limits. You need to check your own policy to ensure that you are aware of the cover provided and whether it suits your needs.
Endorsement
Change in the terms and conditions of your policy. These are shown on the schedule.
Excess
This is the first part of each and every claim which you (not your insurer) must pay. There are two types of excess:
A compulsory excess - This is an excess that has been applied as a requirement by your insurer and will vary according to your personal circumstances and the terms of cover provided. A compulsory excess can, for example, be required if you drive a particular car, if you have protected no-claims discount or you have inexperienced drivers on your policy. There is also a compulsory excess for fire, theft or windscreen claims.
A voluntary excess - This will apply where you agree with your insurer to pay a greater part of each claim than the compulsory excess.
Foreign use
All policies provide the minimum cover you require to drive in any of the EU countries.
To extend this to include your normal policy cover then you need to have a Green Card. Some insurers provide this free of charge. Please see your policy for further details.
Legal Protection cover
This is an additional policy that will safeguard you against the effects of uninsured losses as a result of an accident. Uninsured losses are things such as loss of earnings, personal injury, loss or damage to personal property and excesses under a comprehensive policy. The policy also includes free car hire, replacement car facility, credit repair and vehicle recovery.
Loss
See claim.
Period of insurance
The period stated in the policy schedule usually one year
Proposer
The main policyholder and owner of the vehicle to be insured.
Social, Domestic and Pleasure use (SD&P)
Including commuting - This includes commuting to and from one place of work.
Excluding commuting - Social domestic and pleasure purposes only.
Sum(s) insured
The total amount that you are insured for under each section of the policy and the maximum amount that an Insurer would have to pay in settling a claim.
Third party
Third party is the minimum cover that is available. It complies with the Motor Insurance necessary under the Road Traffic Act. It covers loss or damage to third party property (not your own vehicle) and personal injury caused to other people including passengers and also for liability for accidents caused by your passengers also covers liability arising from the use of a trailer or caravan attached to the vehicle.
Third Party Fire and Theft cover
Third party is the minimum cover that is available. It complies with the Motor Insurance necessary under the Road Traffic Act. It covers loss or damage to third party property (not your own vehicle) and personal injury caused to other people including passengers and also for liability for accidents caused by your passengers also covers liability arising from the use of a trailer or caravan attached to the vehicle. plus the risk of fire and theft in connection with your vehicle in accordance with relevant policy terms.
You, your
The policy holder named in the schedule
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