Certificate of Motor Insurance
a legal document supplied as evidence of the contract of insurance. The effective date of the certificate is the date that you made the contract of insurance or the date when you sought a change to the particulars of the contract (i.e. changed your car).

Claim
when a person, or company, seeks payment or settlement under the terms of an insurance policy. This could be you making a claim under the terms of your insurance policy or a Third Party claiming against you and therefore against your insurance policy.

Comprehensive Insurance
This gives you both of the above and also covers accidental damage to your car

Compulsory Excess
Imposed by the insurance company to keep the overall premium down or to discourage claims for small amounts. Compulsory excess is very common for young and inexperienced drivers and for expensive vehicles.

Contract of Motor Insurance
your motor insurance policy, the certificate of insurance, the schedule (detailing your particulars) and any endorsements (changes) in addition the proposal form or questionnaire that you have completed.

Courtesy Car
a vehicle provided by the repairer (at the request of your insurer) to 'keep you mobile' in the event of your car being off the road for damage repair. It is not intended to be a 'like-for-like' vehicle.

Excess
Either voluntary or compulsory (see below). Excess is the amount you contribute if you make a claim for damage to or loss of your vehicle. If an accident is not your fault it may be possible to obtain a reimbursement from the person at fault (see note on AA Claims Assistance Service).

Excess
is an amount that you agree to pay, at the outset, towards the cost were there to be a claim under your policy. An excess may be voluntary, where you elect to pay an excess in exchange for a reduction in your premium or compulsory; or imposed because of adverse driving experience, young drivers or the type of vehicle which you are insuring or automatically imposed for all customers - for such items as windscreen breakage.

Green card
a document issued to policyholders motoring abroad as evidence that they have the minimum insurance cover required by the law of the country being visited. It is not essential for European travel, because minimum legal cover is automatically included on UK motor insurance policies but is a sensible document to carry should you have the misfortune to be involved in an accident abroad.

Insurance Group
Nearly all cars fall into one of 21 car groups dependant on a multitude of factors - performance, cost of repair, security, value of the vehicle are the main factors in assessing which group a car falls into.

Insurance Premium Tax
a Government tax on all insurance policies which is collected by us on their behalf.

Liability
legal responsibility for causing loss or damage to someone else's property or injury to a person.

Market value
the cost, in the opinion of an independent motor engineer (see below) of replacing your vehicle with a car of the same make, model, specification, similar age, condition and mileage.

Mid Term Adjustment
a change to your policy details which forms part of your contract of insurance when accepted by your insurer and any premium requested is paid.

No Claims Discount
A no-claims "discount" (NCD) or "bonus" means you don't have to pay the full premium if you don't claim. You might get, say, a 30 per cent discount after the first year and this could rise to 65 per cent after four or five years. Insurers often give the discount to new customers who have a claims-free record with another company.

A no-claims discount is not a no-fault discount. You could lose the discount if you claim even when an accident is the fault of another driver.

No Claim Discount
(also known as No Claims Bonus) the reduction in your premium in return for not making a claim.

Protected No Claims Discount
In the event of a claim, if your insurance company cannot recover their outlay from the person responsible, or you cannot recover your excess, your no-claims discount is normally reduced at next renewal. Bonus protection allows up to two non-recoverable claims in a three or five year period without reducing your no-claims discount. This optional extra can cost a further 15% on your premium.

Protected No Claim Discount
an addition to your cover, available for an extra premium, which protects your No Claims Discount status in the event of a claim being made. NOTE: There are conditions attached to this extension in cover.

Protected No Claims Discount
For an extra premium you can protect a no-claims discount you've built up. The insurer will allow a certain number of claims with a set number of years - for example, two claims within five years. These claims won't affect your no-claims discount.

Renewal Date
12 months on from the time that you started your policy. We will send you a renewal notice, a few weeks before your renewal date, outlining the terms and conditions and price for the following year based on the information you have given us. If there have been any changes in your, or your approved drivers circumstances you must tell us. We will offer the best premium available and with your agreement will send you your new certificate of insurance.

Thatcham security device
The Thatcham Motor Insurance Repair Research Centre evaluates the effectiveness of car security products against The British Insurance Industry's Criteria for Vehicle Security. Most Insurers acknowledge the benefits of these devices and allow discounts.

Third Party Only Insurance
Covers you for claims made by other people for bodily injury or damage to their property.

Third Party, Fire and Theft Insurance
As above, plus your car is covered if stolen or damaged by fire.

Tracking Device
These enable the police to track a stolen vehicle via an electronic signal emitted from a sensor concealed in the car. The recovery rate of stolen vehicles is very high. Insurers usually allow up to 10% off the premium if the vehicle is fitted with a tracking device.

Voluntary Excess
When taking out an insurance policy you may obtain a discount on the premium if you agree to pay towards the cost of any claim for loss of or damage to your vehicle.