An estimate of the number of miles you expect to drive during the year you are insured. This includes all and any trips you make such as commutes, holidays, and regular journeys e.g. to the supermarket.
Association of British Insurers
A trade association made up of various insurance providers in the UK. It is not a regulatory body and therefore membership is not mandatory.
Approved repairer
For repairs covered by your insurance policy, your insurer will approve selected garages at which you can get your car serviced.
B
Black Box
Also referred to as ‘Telematics’, a black box is a small device that will be installed into your car to measure your driving, including acceleration, braking and turning. This can be added to your insurance policy to lower the cost of your premiums and also provide added security benefits.
Breakdown cover
When selecting your insurance policy, you will usually be asked whether you want to add on breakdown cover, which will allow you to get roadside assistance should you break down. Some packages (usually more expensive) will include home call outs if your car won’t start at home.
Broker
Brokers act as the middleman between insurance companies and their customers. They will communicate with a number of insurers on your behalf to find you the best deal.
C
Certificate of insurance
A certificate to show that your car has been insured. Your certificate will either be paper or electronic.
Cover Note
In the time between applying for insurance and receiving your certificate of insurance, you can request a temporary cover note from your insurer to explain that your car has valid insurance.
Comprehensive insurance
A type of insurance policy that provides third-party cover for fire and theft (TPFT) in addition to any damage to your own car in the event of an accident.
Courtesy car
Some comprehensive policies will include a courtesy car which is a car loaned to you to use whilst yours is being repaired in a garage. This means that the garage at which your car is being repaired needs to be preapproved by your insurer.
D
Driving other cars (DOC)
Some, but not all comprehensive policies will allow you to drive other people’s cars. The policyholder is the only person permitted to do so and the cover is limited to third party only. Other restrictions may also apply such as your age, location and the vehicle and it is supposed to only be used in emergencies.
DVLA conviction code
A code of four figures that represent certain driving offences such as SP30 (speeding in a built-up area), TS10 (traffic signals offence), IN10 (driving without insurance). The full list of codes can be found on the Gov.uk website.
E
Excess
Excess is the amount of money you will have to pay out if you make a claim before your insurer makes their payout to you. There are two types, compulsory and voluntary.
Compulsory excess – this is the amount that you are obliged to pay and will vary based on your age, driving experience and vehicle.
Voluntary excess – this is the amount you will choose (when you are applying for your insurance) and is added to your compulsory excess. Generally, the higher you set your voluntary excess, the lower your premium tends to be as in the event of a claim, your insurer will not have to pay as much. Therefore, how much you set generally indicates how likely you think you are to make a claim.
F
Fault /non-fault claim
A non-fault claim is where your insurer has not had to pay out for your claim and all costs have been covered by a third party or their insurer e.g. if you are in an accident and the other driver accepts blame, so their insurer pays out for the damage instead.
A fault claim is simply when your insurer has had to pay out when you made a claim. In this instance, fault and blame is not the same thing and a fault claim does not mean that the basis for the claim was your fault. For example, the claim could be based on circumstances that were not your fault or if fault could not be determined such as in a hit and run where the details of the other driver are not known.
Financial Conduct Authority (FCA)
A financial regulatory body that is independent of the UK government that works to protect consumer rights by ensuring that any companies offering financial services are acting in accordance with regulations. Motorly.com is authorised and regulated by the FCA.
G
Green Card
An internationally recognised document that provides proof of insurance within Europe. It is not always needed however having one when you go abroad will make things much easier should you get into an accident and have to make a claim.
I
Immobiliser
A security device that prevents a car from being started unless it has been deactivated by a key or fob. This means that if your car gets broken into, the thief will not be able to drive it away.
Import
A car that is made abroad and then imported into the country. An import can be either ‘parallel’ or ‘grey’.
A parallel import is a car made overseas that matches UK specifications
A grey import is a car that has been made overseas and come into the UK but has not been approved by the EU. These are much harder to insure as they may require specialist parts that are not sourced within the UK.
Indemnity
The concept that if something has been stolen, lost, or damaged, the owner of that asset will maintain the same financial position that they were in prior to the theft, loss or damage.
Institute of Advanced Motoring (IAM)
A body that provides advanced training to drivers after they have passed their test.
Insurable interest
Anybody that owns or partly owns an asset that is being insured has an insurable interest in it. E.g. if you are buying your car on finance, both you and the lender have insurable interest on that car.
Insurance Premium Tax (IPT)
A tax placed on general insurance premiums. This is included in the cost of your car insurance premiums.
Insured Value
The full amount that your insurer will pay out if your car is damaged beyond repair; either equal to the amount the vehicle was said to be worth when you took out the policy or the current market value of the vehicle at the time of the claim (whichever is lowest).
L
License
The two main types of driving license are provisional and full.
A provisional license is given to a person learning to drive, which permits them to drive with an experienced driver or qualified driving instructor whilst they are learning.
A full license is what you will receive once you have passed your practical test so that you are allowed to drive unaccompanied.
M
Main driver
The primary driver of the car. This can be a different person to whoever owns or bought the vehicle.
Material Fact
Any piece of information that could affect an insurer’s decision to provide you with cover. This includes any information that could indicate to an insurer, how much of a risk they perceive you to be. As such, you must inform your insurer of any material facts as a matter of law.
Modifications
Any kind of change that you or somebody else makes to your car that could affect the way it performs such as suspension alterations, tinted windows etc. You must inform your insurer of any modifications you make.
Motor Insurance Bureau (MIB)
A body that helps compensate people who are involved in accidents with uninsured drivers or who are unable to get expenses back from their insurer.
N
No Claims Bonus (NCB)
Each successive year that you go without making a claim on your insurance will get you a discount on your premiums for subsequent policy terms. This is known as a no claims bonus; usually, you will lose some of your NCB if you ever have to make a claim.
O
Owner and registered keeper
A car’s owner is the one who bought it. A car’s registered keeper is the one that uses it the most regularly (this can be the same person or two separate people).
P
Pass Plus
An additional qualification that can be taken by new drivers and that provides extra guidance for things like driving in the dark, on motorways and other scenarios that are not covered by the practical driving test. Sometimes, having a pass plus can get you a bit of a discount on your premiums.
Points
Any motoring conviction that you are found committing will translate into points that go onto your driving license. The severity of the offence will equate to a certain number of points. You must inform your insurer of any points you acquire, which may increase the cost of your premiums.
Policy Term
The period of time that your car insurance policy is valid for. This is usually 12 months.
Pro rata rates
If a policy gets cancelled midway through its policy term, you might only be charged for the amount of time you were covered for, and not the full term.
Protected no claims bonus
A method of safeguarding your no claims bonus by paying an extra amount on top of your insurance premiums. This allows your no claims bonus to remain in tact even if you make a claim however it might not prevent your premium increasing after you make a claim.
Q
Quote Expiry
The amount of time for which an insurance quote remains valid, which will vary between different insurers.
R
Registered Keeper
See owner and registered keeper
Renewal notice
When your policy reaches the end of its term, it will automatically renew unless you notify your insurer that you do not want to take out cover with them for the following year. To remind you that your policy is about to renew, your insurer will contact you within the final month (around 3 or 4 weeks before the end of your term) so that you can shop around for a new deal should you wish to.
Risk
When you are provided with a quote for an insurance policy, several factors will have been taken into account to calculate the cost of your premiums. Variables such as your vehicle, where you live, your age, driving experience and claims history will all influence how much you pay. This is known as a risk profile and helps the insurer decide how likely you are to make a claim.
Road Traffic Act (RTA)
The purpose of the Road Traffic Act is to govern all car insurance in the UK and to ensure that innocent people involved in car accidents are not unfairly left short of money.
T
Telematics
See Black box
Thatcham Device
An immobiliser or alarm device made or approved by the security company Thatcham Security.
Third party, fire and theft (TPFT)
Under this type of insurance policy, you will be covered if you cause harm to somebody else or damage to another car or property. You will be also insured in the event that your own car is stolen, broken into and subsequently damaged, or damaged by a fire.
Third Party only (TPO)
The most basic form of cover that drivers can get in the UK and usually the cheapest. Third Party only insurance will cover any damage/ injury to other vehicles and people in the event of an accident that was your fault. You won’t be able to get financial cover if you or your car suffers damage /injury as a result of the accident.
Tracker
A security device that helps police locate a car in the event that it has been stolen. Some black boxes will have a tracker device built in.
U
Uninsured Losses
Losses that are not covered by your policy e.g. your policy excess and any other expenses incurred by you as a result of an accident such as compensation for a resulting injury or a loss of earnings should you need to take time off work.
Uninsured loss recovery (ULR)
If you are involved in an accident with an uninsured driver, ULR will help protect you against the financial losses that you could incur. Sometimes this will be included in your policy and sometimes you will have to add it on as an extra.
Use types
The ways in which you will use your car. The more use types you select, the more likely you will be deemed to be in an accident. The use types include,
Social, domestic and pleasure
Commuting
Business use
Commercial travelling
Underwriter
The person who decides whether to accept you for an insurance policy and how much your insurance premium will be based on your risk profile.
Being involved in a road accident or the becoming the victim of car theft or vandalism can be really stressful, as well as expensive in the long run. The last thing you would want is for your claim to be rejected by your insurer. Unfortunately, this happens more than you might expect, with 5% of all car insurance claims being either fully or partially rejected. Below, we have outlined the most common reasons why insurance claims can be rejected. Be sure to double check that you have not fallen into any of these traps so that you have cover should you ever need to claim.
Insurers will not pay out if you have provided incorrect or inadequate information on your insurance application, including updating your details should anything change. This may include:
Misstating what you use your vehicle for e.g. saying that you only use it for “social, domestic and pleasure” when in fact you also use it for your daily commute to work.
Misstating where your vehicle is parked at night e.g. saying that you park your car in a locked garage when in fact you leave it on a public street.
Additional people using the car that have not been registered as named drivers. If the main driver of the car is not the same as the policyholder, this is known as ‘fronting’.
Grossly underestimating your annual mileage. (Reasonable margin is usually permitted).
Not disclosing any pre-existing medical conditions e.g. poor eyesight
Failure to update your address on your licence if you move homes.
Failure to declare any modifications to your vehicle.
Failure to disclose previous driving claims or convictions.
Any of the following can also be considered as reasonable grounds for rejection:
Any premiums going unpaid, for example, if you change banks and do not update your direct debits.
Your MOT certificate is out of date.
Your car is not roadworthy, e.g. it requires repairs or modifications to make it legally usable.
General negligence e.g. leaving your car unlocked, with its windows open or keys in the ignition whilst it is unattended.
Driving recklessly including speeding, driving under the influence of alcohol or drugs or any other provable failure to take due care when driving.
Failure to report an accident at the time and attempting to claim for it after time has elapsed.
Failure to notify the police of any criminal activity involving your vehicle and not obtaining a crime reference number.
Many of these rejection reasons can be considered as simply common sense, however, it’s worth checking your policy documents if you can’t remember exactly what information you put in your application. In the event that your claim has been refused and you believe it to be an unfair rejection, you can go through the Financial Ombudsman Service appeals process that will confirm that your claim has been dealt with appropriately.
Car maintenance involves more than just regular services and MOTs. If you are guilty of any of the following, you could be causing unnecessary damage to your car that will result in large repair bills and a shortened life expectancy of your vehicle.
Resting your hand on the gear stick
Resting on the gear stick when you’re not using it to change gears can put additional strain on the transmission mechanics and cause premature wear and tear.
Riding on your breaks when going downhill
Resting your foot on the brakes as you are travelling downhill puts pressure on your braking system and can cause overheating. It’s better practice to shift down to a lower gear, allowing your engine to slow down at a more natural speed.
Riding the clutch
Overusing the clutch, e.g. when you are stationary at a traffic light or keeping it slightly depressed after changing gear, can cause damage to the clutch surfaces by causing them to graze against each other. Because the clutch is generally considered a ‘wear and tear’ component, it is not usually covered by any warranty and so having to get it replaced more often than is necessary can be extremely costly.
Braking too late
Excepting the occasions on which you need to perform an emergency stop, braking too late and abruptly on a regular basis will cause significant damage to your brake pads and discs. Not only are these expensive to replace, but harsh braking also burns much more fuel and produces additional harmful emissions.
Revving a cold engine
All car engines will be cold when they are first started up, so revving it immediately could cause sudden changes in temperature and consequently, damage to different parts. Allow your car to warm up gradually by putting it into neutral for a minute when you first switch the engine on.
Ignoring warning lights
If something is wrong, your car will usually let you know about it through illuminated warning symbols on your dashboard. You shouldn’t ignore these and take your car to a garage as soon as possible in order to get the problem fixed. Likewise, if you notice anything else unusual, such as new sounds or vibrations you should seek specialist assistance.
Overloading your vehicle
Most cars will be able to handle a bit of extra weight, however, it’s important not to overload your car beyond its maximum capacity, which will be outlined in the owner’s manual. This is because any extra weight will put pressure on your brakes, suspension and transmission.
Keeping your fuel levels as low as possible
It is expensive to have your fuel tank constantly filled to the brim which is why many people choose to just fill it up as much as they’ll need for a journey however doing this could be damaging your car. Fuel pumps are susceptible to overheating when they’re not submerged, which in the long term can be damaging.
Shifting into reverse from drive when not stationary (Automatic cars)
In cars with automatic gearboxes, shifting between reverse and drive (and vice versa) without coming to a standstill first can have a big impact on the transmission band of the drive train. Unlike brake pads and discs, which are fairly simple to replace, any repairs on the automatic transmission are complicated and very expensive.
Potholes and speed bumps
Although drivers can’t control the condition of the roads they drive on, it is advisable to avoid or drive around potholes if it is safe to do so, or if not, drive very slowly and carefully over them. Hitting them at a speed can crack and buckle tyre alloys as well as produce lumps in the tyre, causing them to become unbalanced. Speed bumps should be treated with the same caution.
As the name suggests, multi-car insurance provides all the same benefits as a single car insurance policy, except it covers multiple cars instead of just one.
The benefits of multi-car insurance:
A multi-car policy is well suited to households with more than one car. This could include multiple drivers within the same family, couples who live together but have their own car, or someone who owns and drives multiple cars. Up to five cars can be covered by one policy, with the same documents and renewal date required for each car under the policy.
Any vehicles covered by the policy must be used privately by their registered named drivers.
The main advantages of a multi-car policy are:
The same insurance provider covers all the cars belonging to the household.
Only one set of paperwork is needed.
The same policy renewal date for all cars.
You can select different amounts of excess for each of the cars under the policy.
Individual car owners on the policy will still receive their own no claims bonus each year.
Most insurers will offer a discount each time you add a new car to the policy, meaning that it could be a more cost-effective option.
Some insurers will still provide cover for drivers who temporarily live at other addresses, such as university students who live with their parents between academic terms.
How does the renewal work?
Fortunately, most insurers anticipate that households with more than one car will hold multiple existing insurance policies that are all due for renewal at different times. Because of this, you’ll be allowed to add each car one by one onto your multi-car policy as and when its current policy expires, to avoid facing a cancellation fee.
The 12-month period will usually begin on the date of the final car insurance renewal, with temporary short-term cover being used to insure the other cars in the meantime. Once the last car has been insured for 12 months, the policy will renew for the next year.
Things to bear in mind:
As with all insurance products, policies will differ from person to person and so it is important to shop around for the best deal for you. Though many people find multi-car insurance to be the most convenient as well as a cost-effective option for them, several factors can sometimes have an adverse effect on your premium:
The age and driving experience of the drivers covered by the policy. For example, new, young drivers tend to have greater premiums because they are considered higher risk. Therefore, a multi-car policy that covers a parent with a perfect driving record and their teenager who has just passed their test may skew the price of premiums and make it a less cost-effective option.
Most but not all multi-car policies will allow individual drivers to maintain their own no claims bonus, regardless of whether another driver covered by the policy needs to make a claim. All policies are different, however, so ensure that this is the case with your insurer before committing.
The types of car that are being covered by the policy. If the cars you wish to be covered, fall under vastly different car insurance bands (e.g. a very expensive,high-performancee sports car along with an older family hatchback) then separate policies may be a better fit.
Lost your car keys? In the mad rush of modern-day life, it can happen to the best of us. In fact, over a quarter of car owners will lose their keys at some point and 5% will have them stolen. Not only is it hugely frustrating, but it can also be very costly to replace car keys.
Nowadays, most vehicles are operated with what is known as a transponder key, where the key is electronically paired with the ignition system. Additionally, most modern cars are unlocked with keyless entry using an electronic fob with buttons. In some cars, this fob can be used for keyless ignition. Because of the need for specialist electronic programming, replacing a lost key can cost you hundreds of pounds.
Don’t panic, here’s what you can do:
The first thing to do if you lose your car keys is to check your cover. Some insurance policies will cover car key loss and theft, although you should also check whether claiming would affect your no claims bonus. If this is the case, it may be cheaper to replace the keys yourself.
To do so, you will have to go to your car dealership or a specialist locksmith. Depending on the make and model of your car, an engineer will have to programme a new set of keys to pair it with your car, or in the case of a stolen key, replace the lock completely. This process may take over a week to complete.
Why not try this:
It’s all too easy to misplace your belongings, but some things are much harder to replace than others. To avoid the hassle and a large bill from the garage, there are a couple of ways to prevent yourself misplacing your car keys in the future.
If you’re quite a forgetful person, you could attach your keys to a large or brightly coloured key ring and make a habit of putting them in the same place every time you’re not using them, like a hook next to your front door or a specific compartment in your bag.
You can even get gadgets that will help you locate your lost belongings through smart technology. It’s as simple as adding a small, coloured chip to your car keys which will allow them to be tracked via a handy app on your phone. You can add these chips to anything: your phone, your wallet and even your dog! (…Ok, maybe not your dog)
Finally, relax in the knowledge that you’ll never lose your car keys again. Check out how Chipolo works in this short video below:
