Quote Select glossary

Unless you work in the car insurance industry it is not likely that you will have come across the language used in your policy document in your day-to-day life. In this section we have provided a handy jargon buster to help you to banish any confusion.

• Breakdown cover - This is an additional extra that can extend your car insurance cover, helping you should your vehicle break down on the road.
• Excess - Excess is the amount of money that you must pay before the rest of your claim is met by your insurer.
• Exclusions - Situations or circumstances under which you will not be covered by your car insurance policy.
• First party, second party, third party - Legal terms often used to describe accidents. You are the first party, the second party is your insurer and the third party is the person or thing with which you have had an accident.
• Fleet insurance - A term used to refer to the practice of insuring more than one car with the same insurance company.
• Insurance premium tax - IPT is a tax imposed by the government on nearly all insurance products sold in the UK. Usually about 5% on car insurance.
• Liability - A word referring to your financial responsibility to a third party due to an incident or accident.
• Named drivers - People named on your policy who, for an extra cost, are protected by your car insurance policy whilst driving the insured car.
• No claims bonus - A reduction on car insurance premiums that is earned with each full year of claim-free driving.
• Premium - The costs you pay in return for the protection of your car insurance policy.
• Uninsured loss recovery - Cover that will protect you for legal costs should you be involved in an accident with an uninsured driver.

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