Quick glossary to car insurance

Arranging insurance for your car may involve a number of unfamiliar words and phrases. Here's a quick guide to some of the most common ones.

Agreed Excess

This is the first portion of a claim you will be responsible for paying and the insurer will only pay out on the amount above the excess.

Certificate of Motor Insurance

This is a document that provides legal evidence that your vehicle is insured under the terms of the Road Traffic Act.

Comprehensive

Provides cover for liability to third parties for injury or property damage,  damage to your vehicle by fire, theft or damage by attempted theft and accidental damage.

Main driver

The driver who most often drives the vehicle.

No Claims Discount

Policyholders with a claim free (not blame free) record normally qualify for a premium discount. Scales vary from one motor insurer to another but Co-operative Insurance offer up to 70% for five years and this can increase to 7% at subsequent renewals

Policy

Your policy provides the details of your insurance contract. This will explain what you are covered for and what you are not covered for in the event of an accident or your car is damaged by fire or theft, or is stolen.

Premium

The cost of your insurance.

Renewal date

This is the date your existing policy comes to an end and you will be invited to carry on your insurance. Renewal notices are normally sent 4 weeks prior to the renewal date informing you of your premium and any changes to the terms of your insurance.

Road Traffic Act

Requires all motorists to be insured against their liability for injury to others (including passengers) and for damage to other people's property resulting from use of a vehicle on a road or other public place.

Third party fire and theft

Provides cover for liability to third parties for injury or property damage,  damage to your vehicle by fire, theft or damage by attempted theft.

Vehicle use

This is used by insurers to describe the reasons for which you drive your vehicle.