Car insurance glossary

• Act of God - An event not caused directly by an individual that causes damage to your vehicle. An example (albeit an unlikely one) would be a meteor strike. More often than not acts of God are uninsurable.
• Aggravated theft - The forceful or violent theft of your vehicle while you or your spouse is inside the car.
• Betterment - The payment by the insured party (i.e. you) towards a claim in recognition of the fact that the vehicle will be worth more following repairs pursuant to an insurance claim than it was beforehand.
• Car - Any motor vehicle that you have given us details of and for which we have issued a certificate of motor insurance. The car's registration number will be shown on your latest certificate of motor insurance. Accessories, including child seats and spare parts are included in the definition of the car when they are with the car or locked in your own garage.
• Certificate of Insurance The proof of the motor insurance you need by law. The certificate of motor insurance shows: what car is covered; who is allowed to drive the car; and what the car can be used for. If your certificate of motor insurance allows driving by any driver, please refer to your schedule for any restrictions that may apply.
• Claim - A formal application by the insured party to recover damage from the insurance company under the policy.
• Comprehensive Insurance - Cover for you and your car as well as 3rd party's and their cars when you are at fault.
• Dangerous Goods - Dangerous goods as defined in the Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009
• Endorsement - A clause that alters the standard cover provided by the policy.
• Excess - The part of a claim you must pay. Sometimes more than one excess can apply, in which case we add them together.
• Exclusion - An event or circumstance in which the insurance company is not obliged to pay out under the policy.
• Geographical limits - Great Britain, Northern Ireland, the Isle of Man, the Channel Islands and while the car is being transported between any of these places.
• Insurance Premium Tax - A tax levied on nearly all non life insurance policies including car insurance policies payable by the policy holder.
• Market value - The cost of replacing the car with one of a similar age, type, mileage and condition, immediately before the loss or damage happened.
• Period of insurance - The length of time that the contract of insurance applies for. This is shown in the schedule.
• Physical assault - An intentional violent act committed by another person that causes death or serious bodily injury.
• Policy - The contract or document between the insurance company and the policy holder that sets out the legal rights and obligations of each party.
• Premium - The amount paid by the policy holder for insurance.
• Renewal notice - The notice sent by the insurance company to the policy holder inviting him/her to renew the policy.
• Schedule - The latest schedule we have issued to you. This forms part of the contract of insurance. It gives details of the period of insurance, the sections of the policy that apply, the premium you have to pay, the car which is insured and details of any excesses or endorsements.
• Statement of fact - The form that shows the information that you gave us, or was given to us on your behalf. This forms part of the contract of insurance.
• Terrorism - Terrorism as defined in the Terrorism Act 2000.
• Third party - A party involved in the claim who is neither the policy holder nor the insurance company.
• Utmost good Faith - The insurance principle that requires the policy holder to provide all relevant information to the insurance company in good faith.
• Total Loss - A vehicle which is either, in the view of the insurance company, not capable of being repaired or which would cost more to repair than to replace.
• You, your - The person or company shown under 'Policyholder details' or 'Insured details' on the schedule.