Agreed value: This is where you agree the value of your vehicles with your insurer before you purchase insurance. It assumes that some vehicles (such as classic cars) might be worth more as they get older. So when you got claim for replacements or repairs, you want to get compensated with the actual market value of the car and not what it is worth as a piece of depreciating metal.
Any driver: This is an extension of policy that allows any driver that is named on the policy to use any vehicle under the fleet insurance policy. This is very useful for businesses such as couriers and taxis so employees can use any vehicle, enabling flexibility and scalability of the business.
Conviction: For those with motoring offences such as drink-driving or speeding offences, they will need to make our insurance advisors aware of these. You will still be able to get the insurance you need using one of our specialist insurers that we work with.
Classes of use: This is the reason for your insurance e.g social vs business purposes. The classes of use determines the price of your insurance and the risk associated with using those vehicles. For example, collector cars that sit in a garage will be far less risk that a fleet of lorries that are used for hauling goods up and down the country.
Continuous Insurance Enforcement: This is the law that was passed in October 2011 and makes it compulsory for all vehicles on UK roads to have insurance in place. Read more here.
Excess: This is the amount a driver or company is required to pay towards making a claim. So if you are making a claim for a replacement vehicle or to make some repairs, you will need to pay the ‘excess’ which might be a few hundred pounds. The excess is agreed at the beginning of your insurance term and the more voluntary excess you pay, the insurer will lower your premium because it means that you are willing to fit more of the bill if you need to make a claim.
Fleet: Insuring 5 to 500 vehicles under the same policy. By having lots of vehicles, it is known as a ‘fleet.’
Fully comprehensive: This is the highest level of insurance cover you can purchase. It includes third party cover which protects other vehicles, drivers, pedestrians and property and any damages and replacements to you and your automobiles caused by fire, flood, theft and other road accidents.
Group rating: Every vehicle has a rating of 1 to 50 with those more basic vehicles being closer to 1 and those with bigger engines and higher value being closer to 50. The group rating will also determine the cost of your premium as owning more vehicles with a group rating nearer to 50 will naturally be more expensive. Read more about group ratings here.
Immobiliser: This is a security feature consisting of an electronic device fitted to a vehicle that prevents the engine from running unless the correct key or other ignition activation device is present. Having an immobiliser in place significantly reduces the risk of theft and viewed positively by insurers who will likely lower your premium as a result.
Liability: Businesses that have fleets of vehicles on UK roads may become ‘liable’ or ‘responsible’ if they are involved in an accident with another vehicle, driver or member of the public. Companies apply for liability insurance to off-set the potential lawsuits of causing damage to a member of the public or employee.
Mileage: This is the distance that you travel in your vehicle. Usually recorded on an annual basis, those cars and vans that do more mileage will typically pay more for their insurance policies as it suggests that they are on the road more and are therefore at a greater risk of being involved in a road accident.
Modifications: Any additional change to your vehicle, not in the original spec, is considered a ‘modification.’ Examples of these include paint jobs, alley wheels, engine tuning, tinted windows and spoilers.
Multi car: Similar to fleet insurance, this involves insuring a number of vehicles under the same policy and receiving a discount for every extra one your insure. Multi car insurance is something that we can provide too and is it is more popular for households rather than companies.
Named driver: This is the name of the driver that you add to your policy allowing them to drive your vehicles legally. Having extra drivers on your account will increase the cost of your cover, with experienced drivers paying far less than new drivers.
No claims bonus: This is the huge discount available to all drivers if they can drive for several years without making a claim. The discounts increase the more time that you drive claim-free, without discounts of up to 80% available after 5 years of driving without a claim.
Pass Plus Scheme: This is an additional paid-scheme for new drivers to improve their driving and road safety over 6 hours of classes. The scheme is recognised by all insurers and will lower premium – so if you have lots of young drivers aged below 25 years, encouraging them to do the Pass Plus Scheme will save you money on your insurance.
Premium: This is the cost of your insurance policy.
Public liability insurance: This is insurance for your company in case one of your vehicles or drivers causes damage to a member of the public. In the event that you damage another car, driver, passenger or piece of public property, your insurance will pay towards any compensation to the victim, repairs, medical fees and legal fees.
Statutory Off-Road Notification (SORN): This is a certificate stating that your vehicle is ‘off-road’ and therefore not used for driving or on British roads. It is common for those cars not in use or only driven on private land and means that you are exempt from paying insurance. You simply need to ‘make a SORN‘ with the DVLA.
Telematics: This is a little black box, the size of a smart phone, that is fitted to your car’s dashboard and monitors the quality of your driving including speed, turning, accelerating, braking and mileage. The data is automatically sent to your insurer and will reward your good driving with a lower policy. It has been known to reduce premiums by up to 20%.
Third party cover: This is the minimum level of insurance your car, bike or van needs to drive on UK roads. It does not cover any damages to the driver or your own vehicle, just third parties that you may come into contact with. So if you are involved in an accident with another driver and it was your fault, your third party cover will contribute towards their medical bills, legal fees and repairing their automobile.
Third party, fire and theft: This is third party cover that protects other drivers and their vehicles but goes one level up to also repair or replace your own vehicle in the event of a fire or if it is lost or stolen.