Glossary of Car Insurance terms

What do we mean by…?

Here are the meanings of some of the words and phrases used on this website. This glossary is here as a general guideline designed to help you with terms that you might not be familiar with. If you need to understand the term in detail and how it applies to you, then have a look at the policy wording.

Click on the relevant letter to jump to the section you need:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

ABS:

'anti-lock braking system'

Additional Driving Qualifications:

A good way to obtain additional discounts on your car insurance. There are two main qualifications to consider. Pass Plus is a training scheme for new drivers designed by the Driving Standards Agency (DSA), with the help of insurers and the driving instructors. The Institute of Advanced Motoring's Advanced Driving Test aims to significantly improve driving standards using the principles of Advanced Driving pioneered by the Metropolitan Police.

Approved Workshop:

A vehicle service agent and repairer who has been assessed and approved by the Insurer or by a professional body.

Brake Horse Power:

Brake horse power is a measure of the engine's power delivery at the engine's output shaft, (i.e. a measure of the raw power of the engine.) It does not take into account all the loss in power caused by the vehicle's mechanical / electrical components. The actual power delivered to the wheels is much less.

Breakdown Cover:

Additional protection which can be purchased with your car insurance policy. The Swinton online breakdown policy brings a qualified mechanic to your assistance if your vehicle should break down. If you car cannot be repaired at the roadside, you may choose to be towed to your home anywhere within the UK or your intended destination; and then your vehicle to be taken to a garage within 20 miles. You could even gain assistance if your car won't start at home.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Car Alarm:

This is a device installed in a car, in an attempt to discourage theft of the car.

Car Security Device:

Any means of making your car more secure could, in theory, make it eligible for a reduction in your premium. Typically, insurers usually only take into account approved car alarms, immobilisers and tracker devices. See also Security Device.

Certificate of Motor Insurance:

The proof issued by the Insurer that your vehicle is insured, as required by law.

Chassis:

The structural frame on top of which a vehicle is built.

Compulsory Excess:

The amount of any claim which the Insurer insists you pay in the event of a claim. Many insurance policies have a standard compulsory excess as well as additional ones applied for young and inexperienced drivers and high group rated cars.

Compulsory Insurance:

The classes of insurance which are legally required. In the UK, Third Party Only cover is the minimum compulsory level of insurance required under the Road Traffic Act.

Condition:

A clause in a policy which governs the payment of a claim.

Cosmetic Modification:

Alterations to a vehicle which affect its appearance but not its performance such as customised paintwork.

Cover Note:

A document which gives you temporary evidence that your vehicle or other possession is covered by the insurance.

Deductable:

see Excess.

Direct Debit:

A way for a business to collect regular payments from customers. It is the most popular way for people to pay for services such as insurance as it enables the payments to be spread easily across several months.

Driver's Legal Protection Cover:

An optional extra insurance policy to run alongside most car insurance policies which covers you for legal costs in recovering so-called 'uninsured losses'. These can include everything from car hire costs and loss of earnings through to damage to your clothes and luggage if you are involved in an accident which isn't your fault.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Driving Licence:

The legal approval needed to drive a motor vehicle.

DVLA:

Driver and Vehicle Licensing Agency - an executive agency of the Department of Transport which is responsible, among other things, for issuing driving licences and vehicle registration documents.

Excess:

The amount of any claim which you agree to pay if your car is lost, stolen or damaged, irrespective of fault. You are entitled to seek recovery from a responsible party in the event of an accident which was not your fault.

Exclusions:

Circumstances which are not covered under an insurance policy.

Fully Comprehensive or Comprehensive Cover:

The widest ranging vehicle insurance cover. In addition to the cover provided by Third Party, Fire and Theft insurance, this also covers your car against any damage caused by an accident or someone else, whether you are at fault or not.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Full Driving Licence:

The Licence issued by the DVLA to drivers who have passed their driving test. You need a Full Driving Licence to drive a car unsupervised.

Grey Import:

A Grey import is a vehicle designed and built for sale outside the EU, and imported into the UK. As such a vehicle was not originally intended for sale here, it may not be manufactured to European specification and may not have undergone European approval. See also Parallel Import.

Gross Vehicle Weight (GVW):

The maximum laden weight of a vehicle, as defined by the manufacturer.

High Group Rated Cars:

This relates to the rating assigned to a specific vehicle by insurance companies. Please see Motor Insurance Groups.

Immobiliser:

This is an electronic anti-theft device that is usually activated when the ignition key is removed and largely prevents unauthorised starting of the engine. Generally these are now factory fitted by the manufacturer, however it is also possible to have an immobiliser fitted by a garage or specialist who would supply a certificate of installation, detailing the exact model of immobiliser.

Indemnity:

This ensures that following a claim you are restored to the same financial position that you were in immediately before the insured loss. Account is taken for age, wear and tear and depreciation.

Inexperienced driver:

A person who has not held a full United Kingdom or European driving licence for the last 12 months.

Insurance Broker:

An individual or firm which places its customers' insurance with an Insurer.

Insurance Premium Tax (IPT):

A tax (currently 5% on car insurance) levied by the government on premiums collected by the Insurer.

Insurance Schedule:

The document that describes details of the cover you have and information that you have supplied to your insurer.

Insured:

The person who is, or whose car is insured. Also known as the Policyholder or Proposer.

Insurer:

An organisation which issues an Insurance Policy in exchange for a premium and pays any eligible claims arising.

International Driving Permit:

You need a Full Driving Licence to drive in other countries. In certain countries, you also need an International Driving Permit which translates details of a driving licence into several languages. These are issued by the AA, RAC, RSAC and Green Flag.

Kerbweight:

The weight of a motor vehicle when empty.

Legal Liability:

The obligation to recompense others because of your negligence.

Load Index:

A number marked on a tyre's sidewall which indicates its maximum load carrying capacity.

Loading (Premium):

An increase to a premium which is applied as a result of an increase to the probability of a claim.

Low-Profile Tyres:

Tyres which are comparatively shallow in cross-section compared to their width and therefore fitted to relatively large-diameter wheels.

Manufacturer's Unbraked Towing Limit:

A statement by a vehicle manufacturer of the maximum weight of unbraked trailer it is permitted to tow.

Market Value:

For car insurance, the cost of replacing a car with one of similar make, model and condition at the time of the loss or damage.

Medical Condition:

For most car insurance policies, this means any condition which you have had to report to the DVLA as it may affect your driving. Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Medical Examiner's Report (MER):

A report by a doctor, given at the request of the Insurer. The cost is usually paid by the Insurer.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Modified Car:

A vehicle which has been altered in a way that affects its appearance or performance. See also Cosmetic Modification.

MOT:

An annual test required for motor vehicles, including motorhomes but not caravans.

Motoring Convictions:

Offences such as speeding which are detailed on your driving licence. You will need to notify Swinton of any motoring convictions in the last 5 years, even though these may have been removed from your licence.

Motor Insurance Groups:

Cars are usually rated by insurance companies on a scale of 1 to 20; 20 being the highest. This relates to the engine size, it's age and the car's desirability to thieves.

Negligence:

The legal definition of negligence is the failure to exercise the care towards others which a reasonable or prudent person would do in the circumstances, or taking action which such a reasonable person would not.

No Claims Bonus:

A discount offered as a reward for you not making a claim on your insurance for a number of years.

Parallel import:

Vehicles imported from abroad and sold within the UK by the manufacturer, but usually at a higher price than a standard model. See also Grey Import.

Pass Plus:

This is a training scheme for new drivers. This course has been specially designed by the Driving Standards Agency (DSA) to help drivers, amongst other things, gain valuable driving experience and to build on their existing skills and knowledge.

Period of Insurance:

The time covered by a policy and shown in the Schedule.

Personal Liability:

See Legal Liability.

Policy:

The document which details what is covered and outlines the circumstances under which a claim will be paid and the Conditions governing any payment. A policy is a contract which is binding on both the customer and the Insurer.

Policyholder:

See Insured.

Policy Summary:

An outline of the significant details of a policy.

Pre-delivery Inspection (PDI):

The check carried out by the dealer to indentify any problems before delivery of your vehicle.

Premium:

The amount you will need to pay to an Insurer to be covered by the insurance.

Premium Loading:

See Loading (Premium)

Proposer:

See Insured.

Protected No-Claims Bonus:

If you have 4 or more years no claims bonus, you may be able to pay an extra amount, so you may not necessarily lose your no claims bonus if you make a claim.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Provisional Driving Licence:

The driving licence issued by the DVLA to learner drivers before they have passed their driving test. You must be supervised by a qualified person who has held a valid Full Driving Licence for 3 years or more and is over the age of 21 years old, to drive a car with a Provisional Driving Licence.

Q plated vehicles:

Cars or motorbikes with a 'Q' prefixed DVLA number plate are vehicles of which the age or origins are uncertain. These include kit conversion vehicles which are built of major components from more than one donor vehicle or imported vehicles where the date of first registration cannot be established. Q plates are not transferable to other vehicles.

Registered Keeper:

This is not necessarily the legal owner of a car. It is the person recorded by the DVLA as being liable for the licensing of the vehicle or declaring it off the public road and also the person to whom the police would contact about motoring and parking offences. The actual legal owner could be the person or company who bought the car.

Renewal:

Almost all insurance Policies run for a year. At the end of this period, it usually can be continued ('renewed') or transferred to a different Insurer.

Responsible Party:

This is a term used to describe the person who is responsible for causing any losses or damage.

Road Tax:

A tax which must be paid on motor vehicles (but not caravans) before they are allowed on the road.

Schedule:

The document that describes details of the cover you have and information that you have supplied to your insurer.

Security Device:

This is a general term covering car alarms, immobilsers and tracking devices.

Service Description:

The markings on a tyre's sidewall which indicate its size, load index and its speed rating.

Statement of Detail (SOD):

This document records all the details you entered on the internet, and as such forms the basis of your contract with the insurance company. The SOD is available to view at the end of the quote and after the sale, please check this document carefully to ensure that all the details are correct.

The Institute of Advanced Motoring's Advanced Driving Test:

This is accredited by the Driving Standards Agency (DSA) and was introduced in 1956 with the specific objective of significantly improving driving standards.

Third Party Only Cover:

The minimum level of insurance cover for a car which is required by law. Third Party Only covers your liability for death or bodily injury to anyone else and your liability for damage to someone else's property. It does not cover any damage to your vehicle.

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Third Party, Fire & Theft:

In addition to the cover provided by Third Party Only Cover insurance, this also pays you compensation if your vehicle is stolen or destroyed by fire (subject to Policy terms).

Terms, conditions, exclusions and excesses apply. Please refer to relevant policy wording for full details.

Torque:

The turning force produced by an engine - its 'pulling power'.

Tracker Device:

A device which allows a vehicle to be located if it is stolen.

Type Approval:

Type approval is the process which ensures that vehicles, their systems and components, meet the appropriate environmental and safety standards.

Underwriter:

This can be either an Insurer or a particular person working for the Insurer who decides whether or not to accept a Risk and the premium to be charged.

Vehicle Identification Number (VIN):

A unique serial number given by a manufacturer to a vehicle.

Voluntary Excess:

An additional amount you may wish to pay in the event of a claim above any compulsory excess insisted upon by the Insurer. You can decide this sum at the point you take out a policy. Doing this will usually help to lower your Premium.

Wheelbase:

The distance between the front and rear axles of a vehicle.

Wheelclamp:

A means of stopping a wheel on a vehicle from turning. Used as a security device and also to hold illegally parked cars.

Windscreen Cover:

Insurance for your car's windscreen and windows against breakage or damage.

You:

See Insured.

Get in touch

Car quote
Get an online quote
in minutesQuote

Call 0800 072 9018
Let us help you get our best deal

Existing customers
Call us on 0800 072 9018
to speak to your local branch

Car Insurance

enter promo code
PMWTDR663

Car Insurance - we've helped 1 million people