Insurance words worth understanding
Short definitions for research—not substitutes for the wording in a particular policy.
- Annual policy
- Cover normally written for a year. Paying by monthly instalments may be a credit arrangement rather than month-by-month insurance.
- Black box / telematics
- A device, tag or app that records stated driving or journey information for an insurance product.
- Broker
- A firm that helps arrange insurance with an insurer. The broker and underwriting insurer can be different firms.
- Comparison service
- A service that presents results from a panel. A panel is not necessarily the whole market.
- Compulsory excess
- The amount set by the insurer that the policyholder may have to contribute to a claim.
- Fronting
- Giving a lower-risk person as the main driver when someone else is really the principal user of the car.
- Main driver
- The person who in reality has the dominant or most frequent use of the insured vehicle.
- Named driver
- A person listed as permitted to drive under another person's policy. This does not automatically mean they earn their own no-claims discount.
- No-claims discount
- A renewal discount linked to claims history. Its calculation, transfer and treatment after a claim depend on the insurer.
- Policyholder
- The person who enters into the insurance contract and is responsible for the declarations and premium.
- Registered keeper
- The person recorded by DVLA as responsible for registering and taxing the vehicle; not necessarily its legal owner.
- Telematics curfew
- A stated restriction on driving during certain hours. This is different from journey time being recorded or influencing a score.
- Underwriter / insurer
- The regulated firm that carries the insurance risk under the contract.
- Voluntary excess
- An additional amount selected by the customer, on top of compulsory excesses, that may be payable in a claim.