Car Insurance A-Z

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z

The following A-Z information is extracted from various internet sources and the websites used are linked here.

A

ABI

Acronym for the Association of British Insurers, a regulatory body for the UK insurance industry.

Accident & Health

Class of Insurance, under the Insurance Companies Act comprising of two main types of business - personal accident and medical expenses. Personal accident policies will pay a lump sum or weekly benefits in the event of accidental death or injury. Medical expenses insurance will pay the cost of treatment for some health conditions.

Act of God

Accident or event which happens without human intervention, usually due to natural causes, i.e. storm or earthquake. Suggesting that an event was an "act of God" may be a defence in English law against a claim for liability since it could not have been foreseen or safeguarded against. Acts of God can be insurable.

Actuary

A professional person qualified to apply mathematical principles to solving long-term financial problems, primarily in connection with pensions, life insurance and investment.

Addendum

Any change or addition made to a contract.

Additional Voluntary Contributions

Additional contributions made voluntarily by pension scheme members to boost their eventual retirement income.

Advance Payment

Payment made 'up-front'.

Agent

A person who acts for one or a small number of companies, particularly in selling insurance.

Agreed Value

Agreed value is where an insurer agrees the value of the vehicle when a policy is first taken out. In the event of a total loss or theft, this is the amount the insurers will pay.

All Risks

Wider cover than given under a normal property insurance policy. Covers any loss or damage apart from exclusions stated in the policy.

Annual Premium

See "Yearly Premium".

Annuity

An arrangement by which an insurance company pays someone a regular income, usually for life, in return for a lump sum premium.

Any Driver

A policy which allows any qualified driver to drive a vehicle they do not own with the permission of the owner.

Approved Repairer

Parties who are approved by the insurer to repair vehicles.

Assistance

The provision by an insurer or a service company of immediate practical help to resolve an insured problem (e.g. arranging medical treatment abroad/organising a roadside repair).

Arbitration

A method of arriving at an acceptable agreement between two disputing parties. An independent person or body, often a member of the Institute of Arbitrators, listens to the arguments of both parties and then makes a decision which is binding on all concerned.

Assurance

See "insurance".

AVCs

See "Additional Voluntary Contributions".

Average

A policy condition that requires the amount of a claim payment to be reduced proportionately if the policyholder has not insured his property for the full amount of its value or replacement cost.

B

Benefit

The money paid by the life insurance company when a claim is made.

Betterment

The principle by which a claimant has to make a payment towards the cost of the claim because his or her property will be in better condition after repair than before the loss or damage occurred.

Bonus

Amount of money added to the sum insured of a "with-profits" policy. It may be added during the term of the policy (reversionary) or when the policy matures (terminal), or both.

Breakdown Cover

A policy that provides recovery and repair services should a vehicle break down.

Broker

An agent who sells insurance.

Buildings insurance

A policy covering the structure of a house or other building against a number of different risks.

Business Interruption

See "Consequential Loss".

C

Capacity

Capacity is the measure of an insurer's ability to write new business. It depends on the maintenance of adequate reserves.

Captive Insurer

An insurance company set up by an industrial or commercial company, for example an oil company, to provide insurance to that company only.

Carport

A roof that covers a driveway or other parking area. It does not have a door in the manner of a garage and is therefore considered less secure.

Cash Surrender Value

An amount of money received if a policyholder surrenders an insurance policy. In the case of car policies this is usually zero, although some insurers refund some of the premium if a policy is cancelled early.

Certificate of insurance (COI)

Document issued by an insurance company. It certifies that an insurance policy has been bought and shows an abstract of the most important provisions of the insurance contract. It is not a substitute for the actual policy, and is normally a non-negotiable document. It cannot be assigned to a third party, and is unacceptable under the terms of a letter of credit and in making a claim. In life and health insurance, a COI is issued to the members of a group insurance plan, evidencing their participation. In marine insurance (where cargo is insured against a floating insurance policy), COI serves to assure the consignee that insurance is in effect for the goods in transit and a proper policy will follow. Also called 'insurance certificate'.

Claim

When a policyholder or beneficiary seeks payment or settlement under the terms of a policy.

Claims Reserve

The amount of money set aside by an insurer to meet the cost of claims incurred but not yet settled.

Classic cars

The exact definition of a classic car is hotly disputed though the general trend is that any car built before the 1980s is thought to be a classic. For taxation purposes any car built before 1st January 1973 is considered a historic car and therefore exempt of road tax. HM Customs and Excise declares any car older than 15 years and worth more than £15,000 to be a classic car.

Code of Practice

An agreement that certain professions sign up to in which they agree to act in a certain way in order to best protect the consumer.

Co-insurance

An arrangement whereby a number of separate insurance companies share in the cover of one particular risk.

Collective Life Policies

Group life policies, which do not relate to schemes established by an employer for the benefit of employees. Commonly used by credit companies to cover loans made.

Collision Damage Waiver

An extra optional insurance premium, which covers the cost of an excess in a policy on a vehicle, typically a hire car.

Commercial Business

Any policy taken out by a company, partnership or organisation to cover their business. Would include fleet policies for motor business.

Commercial Vehicle Insurance

Commercial vehicle insurance is designed to cover policyholders who need to cover their van or lorry for use in connection with their business, occupation or profession. Within commercial vehicle insurance there are two types of use: one is carriage of owned goods; the other is carriage of goods for hire or reward. An example of occupations that would require cover for hire and reward are haulage contractors, delivery or courier firms.

Commission

Money paid by an insurance company to a broker/independent intermediary/agent for selling policies.

Company Representative

An agent appointed by a life insurance company who is authorised to sell only that company's products.

Composite Insurer

A company which transacts in both life and non-life insurance.

Comprehensive insurance

A policy covering a number of types of loss or damage. A term used mainly in motor insurance.

Condition

Part of a policy stating that certain rules must be followed, for example, the duty to take reasonable care to protect property or to report claims to the insurance company promptly.

Consequential Loss

Insurance covering the loss of profits of a business and certain other costs resulting from fire or other insured event (also known as "Business Interruption").

Consumer Credit Act

Legislation designed to protect the consumer when applying for credit.

Contract

A legally enforceable agreement made between two parties.

Contractual Liability

The liability assumed by a party under a contract.

Contents Policy

A policy covering the contents of a home or other building against a number of different risks.

Contingent Annuities

Annuities paid if a certain event (events) happens.

Contribution

The principle of contribution applies where a risk is insured on more than one insurance policy (for example on a travel and household policy), and the two insurers concerned may share the cost of any claim.

Convertible Term

A term insurance policy which gives the policyholder an option to convert the policy to a whole life or endowment insurance without giving further evidence of health.

Cooling Off Period

A period during which a customer, who has entered into a contract, may cancel it without incurring a penalty.

Cover

Cover describes the specific risk given protection by the policy.

Cover Note

A document giving temporary evidence of cover while the policy and certificate are being prepared.

Critical Illness Insurance.

Pays out a lump sum on the diagnosis of certain life-threatening illnesses specified in the policy.

D

Decreasing Term

A term insurance policy in which the sum insured is reduced by a fixed amount each year, decreasing to nil at the end of the term.

Default

Missing the payment of a premium or series of premiums for a policy.

Deferred Annuities

Annuities that commence after a specified number of years or at a specified age (often on retirement), usually continuing through the policyholder's life.

Deposit

An agreed amount paid when an application is made for an insurance policy.

Direct Sources of Business

Insurance business where no intermediary is involved, including marketing sources e.g. newspaper advertisements, telephone sales and business through branch offices.

Disability Benefit

Certain life policies will pay out if the policyholder becomes permanently disabled. No further benefit is paid on the policyholder's subsequent death. (See also "Critical Illness insurance".)

E

Employers' Liability

A compulsory class of insurance, which most employers must have to cover themselves against claims by employees who are injured at work.

Endorsement

A written amendment to an insurance policy that becomes part of it.

Endowment Policy

A life insurance policy that pays a sum of money after an agreed period of time, or on the death of the policyholder, whichever happens first.

Excess

An amount of money that the policyholder has to pay towards the cost of a claim, for example, the first £50.

Excess of Loss Policy

Covers claims costs exceeding an amount specified in the policy.

Exclusion

A specified type of risk, property, person or event that the policy does not cover.

Ex Gratia Payment

Any payment made by an insurance company that is not strictly necessary under the terms of the policy.

Export Credit insurance

Provides cover for exporters' losses arising from non-payment.

Exposure

Whether, and the extent to which, an insurer is subject to losses arising from a particular risk.

F

Family Income Policy

A type of insurance policy that, on the death of the life insured, pays benefits by instalments until the end of a specified period.

Fatal Accident Benefit

Certain life policies will make an additional payment - over and above the sum insured - if the policyholder dies as a result of an accident.

Fault Claim

A fault claim is one where the policy holder's insurance company is not able to recover all of the costs from another party.

Fidelity Guarantee Policy

A policy covering the risk of dishonesty on the part of an employee who holds a position of trust, for example, a wages clerk.

Financial Adviser

There are two types of financial adviser; both recommend products and services that will help individuals plan their finances. An Independent Financial Adviser, or IFA, works on behalf of the client who can choose from any product or service. A Tied Agent works on behalf of a company and will only recommend their products.

Freestanding AVCs

Additional contributions paid voluntarily into personal pension policies by employees in occupational schemes who wish to top up their pensions, but keep the money separate from the occupational scheme.

Friendly Society

Similar to a mutual insurance company. A friendly society is owned by and established for the benefit of its members, mainly through the provision of life insurance and sickness benefit.

FSA

The Financial Services Authority (FSA) is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. They are a company limited by guarantee and financed by the financial services industry. They have been given a wide range of rule-making, investigatory and enforcement powers in order to meet the four statutory objectives. In meeting these, they are also obliged to have regard to the Principles of Good Regulation. The four statutory objectives are:

Market confidence: maintaining confidence in the financial system.

Public awareness: promoting public understanding of the financial system.

Consumer protection: securing the appropriate degree of protection for consumers.

The reduction of financial crime: reducing the extent to which it is possible for a business to be used for a purpose connected with financial crime.

Fully Contracted-out

Pension policy where the only premium received is the DSS rebate.

G

General Insurance

Insurance of (non-life) risks where the policy offers cover for a limited period, usually one year, for example car insurance.

General Liability

Covers the policyholder's legal liability for injury, property damage or financial loss caused to others.

Green Card

The Green Card is a document that is recognised in over 40 countries including all the countries of Europe. It offers no insurance cover. It is proof that the minimum legal requirements for third party liability insurance in any country for which the Green Card is valid are covered by the insured person's own motor policy. Where the Green Card is needed A Green Card is not required by law to cross borders within the European Union and some other countries. This is because all EU countries and certain other countries comply with the first directive on motor insurance, which says that every insurance policy issued in the EU must provide the minimum insurance cover required by law in any other EU country. The countries that don't need a Green Card are: Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden and Switzerland. The countries that do need a Green card are: Albania, Belarus, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia (FYROM), Islamic Republic of Iran, Israel, Moldava, Morocco, Russia, Serbia and Montenegro, Tunisia, Turkey and Ukraine.

Group Life

A term that relates to the provision of lump sum death in service benefits for groups of employees.

Group Permanent Health Insurance

Policies arranged by employers for their employees, providing for the payment of income during a period of incapacity due to ill health or accident. The benefit is usually payable until retirement.

Group Personal Pensions

An arrangement made for the employees of a particular employer to participate in a personal pension scheme on a group basis. This is not a separate, or occupational, pension scheme, but merely a collecting arrangement.

Group Sponsored Schemes

Scheme set up by employers for the benefit of their employees to provide life cover or a pension on retiring, or both.

H

Holiday (Travel) insurance

A policy covering certain risks connected with holidays. Usually includes cover for the costs of unavoidable cancellation, personal accident, medical treatment abroad and lost or stolen luggage.

Home-foreign

Home foreign policies are issued to provide insurance where the business is written in one country, although the risk is actually situated abroad.

Home Service

The provision and servicing of life and non-life insurance by company agents calling regularly at policyholders' homes. (See also "Industrial Branch")

Household Business

Includes insurance of both structure/buildings and contents, along with any additional buildings included within the policy such as legal expenses.

I

Immediate Annuities

Annuities that commence immediately, or shortly after, purchase.

Impaired Lives Register

Lists individuals who have been refused, or charged more for life insurance for medical reasons.

Increasing Term

A term insurance policy in which the sum insured increases each year by a fixed percentage of the original sum insured. Designed to increase policyholders' life cover as their earnings increase.

Indemnity

The principle by which policyholders are put in the same financial position after a loss as they were immediately before it.

Independent Financial Adviser

A broker or other intermediary authorised to sell or advise on the policies of any life insurance company, as well as other financial products (e.g. unit trusts).

Index-linked

Insurance where the amount of cover changes automatically in line with an index. Examples are the cost of rebuilding a house or replacing its contents.

Individual Permanent Health Insurance

Policies arranged by an individual providing for the payment of income during a period of incapacity due to ill health or accident. The benefit is paid to the policyholder until he/she is able to return to work, or until retirement.

Individual Policy

Insurance taken out by an individual on his or her own life or by an individual or legal entity on the life of another.

Industrial Branch

Life insurance where premiums are collected by an insurance company agent at the policyholder's home, at intervals of less than two months, often for a relatively small amount. Whole life and endowment contracts are the only types of business written in the industrial branch.

Insurable Interest

A principle of insurance which states that someone may only take out insurance if he/she stands to suffer a financial loss from an event covered by a policy. Individuals have an unlimited insurable interest in their own life and that of their spouse.

Insurance

A means of indemnity against occurrence of an uncertain event. Originally the term assurance was generally used for life insurance , but now the two words are interchangeable.

Insurance Company

A company that takes on risks under the policies it sells in return for the payment of premiums. Companies may be "mutual" (owned by the policyholders) or "proprietary" (owned by the shareholders).

Insurance Premium Tax

A tax imposed on most non-life insurance premiums.

Insured

A person covered by an insurance policy.

Insurer

See insurance Company/Lloyd's.

Intermediary

Person or organisation that offers advice and arranges policies for clients. Intermediaries may be either "tied" - representing one company in the case of life business or a limited number of companies for general business, or "independent" - with no limit on the number of companies with which they can deal.

Introducer

Individuals, companies or websites that provide information to consumers about specific products or services provided by third parties.

Investment

The act of allowing someone else to have use of your money in return for payment of interest and/or a share in profits that may be made.

Investment Income

Income earned on the money held by insurers on behalf of policyholders, having been received in premiums but not yet paid out on claims.

J

K

Key Person Insurance

In the event of the death of a key employee on whom the business depends for its continued profitability, or even existence, this type of cover provides a sum of money which can be used to pay for the cost of finding and training a successor, and to compensate for reduced profitability.

L

Legal Expenses Insurance

Covers the cost of legal proceedings in circumstances defined in the policy.

Level Premium

The same premium paid throughout the term of a policy.

Liability

Legal responsibility for causing loss by injury or damage to a person or persons and/or their property.

Life Assurance Premium Relief

Tax relief on life insurance premiums. Applies only to policies taken out before 14 March 1984.

Life Expectancy

The average length of time people are likely to live, taking into account such factors as their present age, health and occupation.

Life Fund

The pool of money maintained by an insurance company, into which all its life insurance policyholders' premiums are paid, and out of which all claims are paid.

Linked

Describes any savings product where the saver's money buys, or is deemed to buy, units in an investment fund. The value of the saver's fund is thus linked to the value of the units.

Lloyd's of London

An insurance market organised into syndicates, which underwrites most types of policy.

Lloyd's Members

Individuals on whose behalf Lloyd's policies are issued. They pledge all their personal wealth to pay losses. Corporate members were also introduced in 1994.

Loading

The extent to which an individual is charged more than the "average" for his/her insurance.

Long-Term Care Insurance

Provides for the cost of long-term care. Intended mainly to cover the costs of elderly people at home or in residential care.

Long-Term Insurance

Insurance of risks where cover extends over a period of more than a year and where predetermined premiums are often paid on a regular basis over a long period. Frequently, these insurance contracts are intended to provide an investment vehicle as well as risk insurance , e.g. endowment policies.

Loss Adjuster

A person, independent of an insurance company but engaged and paid by it, who checks that a claim is covered and negotiates with the policyholder the amount payable for a claim.

Loss Assessor

A person who negotiates claims on behalf of policyholders.

M

Managed Funds

Schemes by which the pension funds for a group of employees buy units in various funds managed by an insurance company.

Marine Aviation and Transport

The class of insurance which embraces damage to the hull and cargo of ships and aeroplanes and liability for property damage, injury and death to passengers and others.

Market Value

The value of a motor vehicle at a specific time, which the “market” is willing to pay.

Material Fact

Information which will have an effect on a policy or premium. Failure to disclose a material fact could invalidate a policy.

Maturity

An agreed date when an endowment policy comes to an end and the sum insured plus any bonuses earned is payable.

Mechanical Breakdown Insurance

Covers against the cost of breakdowns of household appliances or motor vehicles.

Mortgage Indemnity Insurance

Provides cover for a mortgage lender for any loss they might suffer as a result of a property on which they provided a loan being sold for less than the amount of the loan.

Mortgage Payment Protection Policy

Cover for monthly mortgage repayments in the event of accident, sickness or unemployment.

Mortgage Protection Policy

A life insurance policy that covers the outstanding amount of mortgage if the policyholder dies before the loan is repaid.

Mortgage-Related Policies

Policies used both to provide protection for a mortgage loan and as a savings vehicle to repay the loan at maturity.

Motor Insurance

Covers legal liabilities arising from the use of a motor vehicle. Comprehensive policies also cover damage to the vehicle.

Motor Insurer's Bureau (MIB)

A body funded by motor insurance companies which deals with claims for injury compensation when the driver at fault is not insured or cannot be traced.

Mutual

An insurance company that is owned by its policyholders.

N

New-For-Old

Cover for property where an item lost or destroyed would be replaced with a brand new one, with no deduction for wear and tear. Also called "replacement as new".

No Claim Discount(or Bonus)

A reduction in a renewal premium to reflect a claim-free record; used most often in motor insurance.

Non-Fault Claim

The insurance company recovers all the costs associated with a claim from the other party.

Non-Motor

Non-motor includes all business written under the accident and health, general liability, pecuniary loss and property damage classes. Also known as Fire and Accident.

Not Contracted-out

Someone who is not contracted out of the State Earnings-Related Pension Scheme (SERPS).

O

Optional Extras

Other products available in addition to your car insurance, i.e. breakdown cover or windscreen cover.

Ordinary Branch

Life insurance and pensions business where the premiums are usually paid through the banking system by cheque, standing order or direct debit.

Outgoings

The total expenditure of an insurer in relation to any class of insurance business, comprising the cost of claims and the insurer's business expenses, including any commission paid to sales staff, brokers or intermediaries.

Overseas

A country other than England, Northern Ireland, Scotland and Wales.

P

Partially Contracted-out

Pension that receives both a premium from the policyholder and a DSS rebate.

Pecuniary Loss

Covers any financial loss that may have been incurred, e.g. business interruption and mortgage indemnity policies

Pension

A regular income paid to a person when he/she retires from work. A life company pays an insured pension from funds built up from contributions paid while working.

Permanent Health Insurance

A policy that pays an income for as long as the policyholder is unable to work as a result of accident or illness. The benefit is usually payable until retirement date.

Period of Insurance

The period of time covered by a policy as shown on your certificate of motor insurance.

Persistency

The rate at which policyholders keep their policies with a life insurer.

Personal Accident Insurance

A policy that pays specified amounts of money if the policyholder is injured in an accident. Depending on the type of disability, the payments may be made weekly, for a set period, or as a lump sum.

Personal Lines of Business

Any policy taken out by an individual in his/her private capacity.

Personal Pensions

Contracts under which payments are made to an insurance company by an individual policyholder during his/her working life, in return for a regular income, to be paid after retirement.

Pluvius Insurance

Covers against losses arising as a result of bad weather.

Policy

The document providing full details of the contract between the insurer and the policyholder.

Policy Term

The length of time for which a policy provides cover.

Policyholder

A person or organisation to which the insurer issues the policy. Normally the person to whom benefits are payable.

Pool Reinsurance

A Government-backed reinsurance scheme that meets the cost of claims over £100,000 occurring as a result of terrorist attacks in Great Britain.

Premium

The amount paid by the policyholder for insurance.

Private Medical Insurance

A policy that covers the cost of private medical treatment.

Product Liability Policy

Protects businesses against liability claims resulting from defects in the products they sell.

Professional Indemnity Insurance

Protects professionals against liability claims resulting from negligent work.

Property Damage

Property policies cover specified property that may be damaged or destroyed by events or perils, such as fire, storm or theft.

Proposal Form

An application for insurance cover.

Proposer

A person or company who applies to take out insurance.

Public Liability Policy

Covers legal liability for injury or damage caused to others.

Q

Quote

An amount an insurer estimates to be the cost of providing a service based on the available information.

R

Rate

The price of insurance, usually expressed as the cost of a unit of cover, e.g. £x per £1,000.

Registered Keeper

The person or organisation recorded by the Driver and Vehicle Licensing Agency as being the legal keeper.

Reinsurance

Re insurance is the cover insurance companies can purchase to protect themselves against large losses.

Renewable Single Premium Policy

Policies under which additional premiums can be paid later to provide increased benefits; these are at the policyholder's discretion and are non-contractual.

Renewable Term

A clause within a term policy that allows the insured to continue with the policy beyond a year without evidence of insurability.

Renewal Notice

Notice sent to the policyholder inviting him/her to renew a policy for a further period and stating the premium payable.

Replacement-as-New

See "New-for-Old".

Reserve

The sum set aside by an company as a liability to fulfil future obligations.

Reversionary Bonus

A bonus that is added to the policyholder's investment during the course of the policy.

S

Savings Policies

Policies used as a savings vehicle.

Settlement

Payment of a claim by the insurer.

Short Term Insurance

Short period insurance is designed for customers who do not require an annual policy. The insurance period in question can be anything from 1 day upwards. This type of policy is particular useful to people who required to be added on to another individuals motor policy but cannot be covered by the existing policy.

Single Premium Policy

A long-term insurance policy where the premium is paid in a single lump sum.

Solvency Margin

The solvency margin is the excess of the reserves the insurance company holds over its liabilities.

Subrogation

The right of an insurer who has indemnified a policyholder to take over any legal rights the policyholder may have had in respect of that particular claim.

Sum Insured

The amount for which property is insured and the maximum amount which the insurance company will pay for any claim. In life insurance, the amount which is guaranteed to be paid and to which bonuses may be added.

Surrender Value

The amount of money paid to the policyholder when certain types of life policy are discontinued before the full benefit becomes payable. Not all life policies have a surrender value.

Temporary Policy

See "Term Policy".

Terminal Bonus

A bonus paid on certain life insurance policies either at maturity, or if a claim is made.

Term

The period of time for which a policy is in force.

Term Policy

Life cover provided for a specified number of years. The insurer only pays out if the policyholder dies within this time.

Territorial Limits

The geographical limits inside which your policy is valid. Most UK insurance policies are valid in Great Britain, Northern Ireland, The Isle Of Man and the Channel Islands. Also included are the journeys between each location.

Third Party

Someone involved in a claim who is neither the policyholder nor the insurer.

Total Loss

If your insurance company decides it is uneconomical to repair your car following an accident, theft or damage, it will be 'written off' as a total loss.

Trading Result

An insurer's overall profit/loss calculated as the underwriting result plus investment income.

U

Under Insurance

When the sum insured is not enough to cover the maximum possible loss or damage.

Underwriter

Person who decides whether to accept a risk and calculates the premium to be charged.

Uninsurable Risk

A risk where loss is either inevitable e.g. a house already on fire or a person suffering from a terminal illness. Also applies where damage is gradual e.g. rust and corrosion.

Uninsured Loss Recovery (ULR)

This is an additional insurance protection. If a motor accident was the fault of a third party, the insurers will attempt to recover your uninsured losses such as repair costs , policy excess, loss of use, hire costs of alternative vehicle, transport costs, etc.

Unitised With-Profit

Contracts where premiums are invested in units, either in the with-profits fund or in linked funds or in a mix of both.

Unit-Linked

See "Linked".

Utmost Good Faith

The principle of insurance that requires proposers to give all relevant information to the insurer.

V

Van Insurance

Vans can be insured for just private use, but if business use is required a commercial vehicle insurance would be required.

W

Waiver of Premium

An optional extra on a life policy which means that the insurance company will pay the premiums if the policyholder is unable to because of illness or injury.

Warranty Insurance

This type of insurance provides cover against the cost of repairs to broken-down household appliances.

Whole Life Policy

A policy where premiums are paid for the rest of an individual's life, or up to a specified advanced age, and benefit is paid on the death of the person insured, whenever that occurs.

With-Profit Bonds

A single premium policy where a lump sum is paid into a with-profits fund made up of investments like company shares, fixed interest securities, commercial property and money.

Write-Off

A damaged vehicle which cannot be repaired or which would cost more to repair than the car was worth before the damage occurred. Also known as a "total loss".

X

Y

Yearly Premium

Recurring premiums paid over the term of the policy, at intervals specified in the policy.

Z