Car insurance glossary.

Aggravated theft: The theft of your car by force, while you or a named driver are in or near the vehicle.

Amendment: A change made to your policy during your period of insurance – for example, updating your address or adding a named driver.

Annual mileage: The total number of miles you expect to drive in a year. It's one of the factors insurers use when calculating your premium.

Annual premium: The cost of your insurance policy for a 12-month period of cover. If you pay monthly, the total amount you pay may be higher due to instalment charges.

Approved repairer: A garage that's been vetted or recommended by your insurer to carry out repairs, often backed by a repair guarantee.

Automated car: A car that's legally able to drive itself, fully or partly, on public roads, and appears on the government's official list of automated vehicles. Cover applies whether you're driving manually or the car is driving itself.

Betterment: When repair work leaves your car in better condition than it was before the damage – for example, by replacing a worn part with a new one. You may be asked to contribute towards this cost.

Black box: See Telematics.

Breakdown cover: Help for drivers whose car breaks down and leaves them stranded, such as roadside assistance or recovery to a garage or home.

Broker: An independent company that arranges and sells insurance on behalf of different insurers.

Cancellation: Ending your policy before your period of insurance ends. This may include a cancellation fee. Depending on your policy terms, you may need to pay an additional amount or receive a partial refund.

Car insurance groups: A classification system, usually numbered 1 to 50, that insurers use to reflect a car's cost to repair, its performance and other risk factors, when working out your premium.

Car alarm: An anti-theft device fitted to your car that sounds an alert if someone tries to break in or steal it.

Certificate of motor insurance: Your legal proof of car insurance. It shows which car is covered, who's allowed to drive it, and what it can be used for.

Charging cable cover: Cover some insurers offer as an optional extra for the cables used to charge an electric or plug-in hybrid car, protecting against loss, theft or damage.

Claim: A request you make to your insurer for a payment or repair, following a loss, damage or accident covered by your policy.

Class of use: How you use your car – for example, social use, commuting, or business use. Your premium reflects the class of use you declare.

Classic car: For insurance purposes, a car over 15 years old may be considered a classic car, depending on its value. These often need specialist insurance that reflects their age, value and how they're used.

Comprehensive cover: The highest level of car insurance. It covers damage to your own car as well as your liability to third parties, and usually includes fire and theft.

Compulsory excess: The part of a claim you must pay for, set by your insurer and shown on your policy schedule.

Conviction code: A four-digit code on your driving licence that identifies a specific motoring offence, such as speeding or careless driving.

Courtesy car: A temporary replacement car your insurer may provide while yours is being repaired following a claim.

Cover note: Temporary proof of insurance issued while your full policy documents are being prepared, usually valid for a short period.

Driving licence: The official document that gives you legal permission to drive. Different categories cover different types of vehicle.

Driving Other Cars (DOC) cover: A feature sometimes included with comprehensive policies that lets you drive another car with the owner's permission, usually for third party cover only.

DVLA: The Driver and Vehicle Licensing Agency – the government body that keeps records of every licensed driver and registered vehicle in the UK.

Electric vehicle (EV) / battery electric vehicle (BEV): A car powered by a rechargeable battery and electric motor, with no petrol or diesel engine and no exhaust emissions.

Endorsement: A change to the standard terms of your policy, shown on your schedule. Not to be confused with penalty points on your licence – see Conviction code.

Excess: The amount you pay towards a claim before your insurer covers the rest. This can include both compulsory and voluntary excess, which are added together if both apply.

Exclusion: An event or circumstance that your insurer won't pay out for under your policy.

Fault claim: A claim where your insurer pays some or all of the costs arising from an incident and is unable to recover those costs in full from another party. A fault claim does not necessarily mean you were responsible for the incident.

Financial Conduct Authority (FCA): The UK regulator that oversees insurance companies, brokers and other financial services firms to help protect consumers.

Fronting: Insuring a car in the name of a more experienced or older driver when they aren't really the main driver, in order to reduce the premium. This is illegal and can invalidate your cover.

GAP insurance: Cover some providers offer as an optional extra that pays the difference between what your car insurer pays out after a total loss and what you originally paid for the car.

Geographical limits: The areas where your policy is valid – typically Great Britain, Northern Ireland, the Isle of Man, the Channel Islands, and while your car is being transported between them.

Green card: A document some insurers can provide as proof of cover when driving in certain countries outside the UK.

Home charging point (wall box) cover: Cover some insurers offer as an optional extra for the fixed charging unit installed at your home, for electric and plug-in hybrid car owners.

Hybrid electric vehicle (HEV): A car with both a petrol or diesel engine and an electric motor, where the battery recharges itself – for example through braking – rather than being plugged in.

Immobiliser: An electronic security device that stops your car's engine starting without the correct key or fob, helping to reduce the risk of theft.

Import vehicle: A car that wasn't originally manufactured for the UK market and has been brought in from abroad. These can sometimes be more expensive to insure.

Indemnity: The insurance principle of putting you back in the same financial position you were in before a loss, as far as possible.

Insurance Premium Tax (IPT): A government tax applied to most general insurance policies, including car insurance, and included in your premium.

Insured person: A person named as a driver on your current certificate of insurance.

Insured value: The amount your insurer will pay out for your car if it's stolen or damaged beyond repair.

Legal owner: The person or company that owns the car – for example, a finance company if the car is on a lease or finance agreement. This can be different from the registered keeper.

Main driver: The person who drives the car most often. This isn't always the policyholder.

Market value: The cost of replacing your car with one of a similar make, model, age, mileage and condition, immediately before it was lost, damaged or stolen.

Modifications: Any changes made to your car's manufacturer specification – such as engine tuning, alloy wheels or styling changes. You must tell your insurer about these.

Motor Insurance Database (MID): A national database of insured vehicles in the UK, managed by the Motor Insurers' Bureau and used by the police and DVLA to check a car is insured.

Named driver: Someone added to your policy who's allowed to drive the car in addition to the policyholder.

No claims discount (NCD): A discount on your premium for each year you don't make a fault claim, sometimes called a no claims bonus.

Non-fault claim: A claim for an incident where you aren't considered responsible, and your insurer may be able to recover its costs from the party at fault.

Optional extras: Additional types of cover you can add to your policy for an extra cost, such as breakdown cover or courtesy car cover.

Partner: Your husband, wife or civil partner, or someone who lives with you at the same address and shares financial responsibilities with you.

Period of insurance: The length of time your policy covers you for, shown on your schedule.

Plug-in hybrid electric vehicle (PHEV): A car with both an electric motor and a petrol or diesel engine, where the battery can be charged by plugging-in or by the engine.

Points on your licence: Penalty points added to your driving licence for motoring offences. Building up 12 or more points within three years can lead to disqualification.

Policy: The contract between you and your insurer, setting out the terms of your cover.

Policyholder: The person named on the policy schedule who has taken out the insurance.

Premium: The amount you pay for your car insurance.

Public charging point: A charge point available for public use – for example at a supermarket, service station or on the street – used to top up an electric or plug-in hybrid car.

Rating factors: The different pieces of information insurers use to calculate your premium, such as your age, address, occupation, car type and claims history.

Registered keeper: The person responsible for a car on a day-to-day basis, including registering and taxing it. This isn't necessarily the same as the legal owner.

Renewal notice: The letter or email your insurer sends inviting you to renew your policy before your period of insurance ends.

Risk address: The address where your car is normally kept overnight. This affects your premium, as some areas carry more risk of theft or damage than others.

Road Traffic Act: The law (Road Traffic Act 1988) that makes it a legal requirement for all drivers in the UK to have at least third-party car insurance.

Schedule: The document that forms part of your contract of insurance. It shows your period of insurance, the car covered, your premium, and details of any excesses or endorsements.

Settlement: The amount your insurer pays out to settle a claim.

Statement of fact: A form showing the information you gave your insurer, or that was given on your behalf, when you took out or renewed your policy.

Statutory Off Road Notification (SORN): A declaration to the DVLA that a car is off the road and won't be driven or parked on public roads, meaning you don't need to tax or insure it while it's off the road.

Telematics (black box): Technology – often a small device fitted to your car, or a smartphone app – that monitors how you drive, including your speed, braking and cornering. Safer driving can lead to lower premiums.

Third party: Someone involved in a claim who isn't the policyholder or the insurer – for example, another driver or their passengers.

Third party fire and theft: Cover that includes the same protection as third party only, plus cover if your car is stolen or damaged by fire.

Third party only: The minimum level of cover required by law to drive in the UK. It covers injury to other people and damage to their property, but not your own car.

Total loss: When your insurer decides your car is beyond economical repair. Also known as a write-off.

Underwriter: The insurance company that takes on the risk of your policy and is ultimately responsible for paying claims.

Uninsured driver promise: A feature of some comprehensive policies that protects your no claims discount and excess if you're in an accident caused by an uninsured driver.

Uninsured loss recovery (ULR): Help recovering costs that aren't covered by your insurance after a non-fault accident – such as loss of earnings or vehicle hire – from the party responsible.

Uninsured losses: Any losses that aren't covered by your insurance policy. This can include your excess.

Unroadworthy: Describes a car that doesn't meet the legal requirements to be used on a road or other public place.

Van insurance: Insurance specifically designed for vans, rather than cars.

Voluntary excess: An additional amount, on top of any compulsory excess, that you agree to pay towards a claim in exchange for a lower premium.

Write off: Another term for total loss – when your car is too expensive or uneconomical to repair.

You, your: The policyholder named on your certificate of motor insurance and policy schedule.

Tesco Car Insurance is arranged and administered by Tesco Insurance and is underwritten by Tesco Underwriting Ltd.

You’ll find complete details of the cover, monetary limits, exclusions, excesses and terms in our policy documents.