We try to make car insurance as straightforward as possible, but despite our best efforts, we know some of the terms can still be difficult to understand.
So, here’s our car insurance and garage jargon buster - we hope you find it useful.
Act of god
Sometimes, an accident happens that isn’t anyone’s fault. An unpredictable, unforeseeable event - such as a lightning strike - can damage your car or your property, which you’re unable to prevent from happening. In the insurance industry, we call this kind of incident an ‘act of god’.
A-pillar
The A-pillar is the part of the car’s frame between the windscreen and the front doors. The pillar extends down to the floor of the car with the front door hinges attached to the lower section. Designed to stay intact in the event of a crash and reduce blind spot out of the cabin, the A-pillar is the most important pillar of your car.
Adjuster
An adjuster is someone who assesses the damage to your vehicle to establish what damage has been done and who may be at fault. They will assess claims and calculate your claim settlement.
Amendment
Any change you make to your insurance policy is called an amendment. This might be a change to your personal details or a change to your cover type. If you're a Direct Line policyholder, you can make changes via your online account, or in the app.
Annual mileage
This is the number of miles your car will drive in a year.
Approved repairer
As the name suggests, this is a repairer we’ve approved and authorised to repair your car following a claim.
Automatic transmission
Transmission is a mechanism that transmits the power from a car’s engine to its wheels. There are two main types of transmission in most cars on the road today: automatic and manual. In an automatic transmission car there’s no clutch pedal or gearshift. This means the driver doesn’t have to shift gears manually - it’s all done behind the scenes.
AWD
All-Wheel Drive - often used to refer to a four-wheel drive car. AWD systems are designed to function on all types of surfaces, both on and off-road, and most of them cannot be switched off. In short, an AWD car drives all of the wheels, all of the time.
Black Box
Black Box insurance uses telematics technology to monitor your driving performance. It often uses a small device to plug into your car. Some providers (including Direct Line) will give you a discount based on your driving.
Breakdown cover
Some car insurance policies include breakdown cover, some will offer it as an optional add-on. If not, you can buy it separately from providers such as Green Flag. If you have breakdown cover, you can call for assistance if your car breaks down. They will either fix your car by the roadside or tow you to a garage (depending on your policy).
Cancellation fee
If you cancel your policy early, before it’s due to end, your insurer may charge you a cancellation fee. This varies from insurer to insurer, so check before you buy your policy. You should have a 14-day ‘cooling off’ period at the start of your policy, so if you need to cancel, it’s cheaper to do it within this window.
Certificate of insurance
This is one of the most important documents you’ll need. It’s proof that you have insurance, and what that insurance includes (cover type, named drivers, etc). You will need to show your certificate of insurance if you have a policy with us, you can find your certificate of insurance in the Direct Line app.
Comprehensive cover
Sometimes referred to as ‘comp’ or ‘fully comp’, comprehensive cover can help pay for damage to your vehicle if it’s been involved in an accident or collision with another vehicle. It also covers you for third party, fire and theft.
Continuously variable transmission
Rather than using gears, a CVT has an infinite ratio between wheel speed and engine speed. This means it can give seamless acceleration without the ‘shift shock’ when changing gears, no frequent gear changing on hills and better fuel efficiency. And did we mention the smoother driving experience?
Courtesy car
If your car’s in for repairs following an accident, most insurers will provide an alternative car for you to drive while yours is out of action. A courtesy car is sometimes referred to as a temporary replacement vehicle.
Drivetrain
Refers to the group of components that allow the car to release its full power. This includes the engine, transmission, drive shafts and drive wheels.
Endorsement
An endorsement is a change or alteration to your original car insurance policy. So, if the ownership of the vehicle has changed, or you’ve modified your car in some way – like adding alloy wheels or a tow bar – you’ll need to let your insurer know. An endorsement can be added to your policy once you let your insurer know your change in circumstances or requirements.
Excess
This is the amount you must pay towards any claim you make. Car insurance excesses are made up of voluntary excess, where you choose the amount, and compulsory excess that is set by your insurer.
The voluntary excess you set may affect your premium. For example, if you choose a lower excess your premium could go up, and if you choose a higher excess your premium may go down. Keep in mind; if you choose a higher voluntary excess to lower your premium, you’d have to pay this out if you’re involved in a claim for which you’re at fault.
Compulsory excess
+ Voluntary excess
= Total excess you’d pay in the event of a claim
For example, if you choose a voluntary excess of £350 and a compulsory excess of £100 applies, the total excess you’d pay if you had to claim would be £450. If you’re not at fault, then the excess will form part of your uninsured losses claim against the other person's insurer.
Hybrid cars
Hybrid cars are designed to use more than one means of propulsion. They’re powered by either petrol or diesel engine and an electric motor. They use less fuel and have reduced CO2 emissions when compared to conventional cars.
Indemnity
An indemnity is an agreement where one party agrees to compensate the other in the event of a loss. For example, when an at-fault driver agrees to pay for damage caused to another vehicle or property.
ISOFIX
ISOFIX stands for ‘International Standards Organisation FIX’ and it’s the universal standard for installing child seats into cars. This means all carmakers have to provide dedicated attachment points in new cars to make fitting child seats quick, safe and simple.
Market value
This is the cost of replacing your car with another of the same make and model and of a similar age and condition, at the time of the accident or loss.
Motor Insurers Database (MID)
The Motor Insurers Database holds details of all motor insurance policies in UK. Data from the MID is used by police to help combat uninsured driving and enforce motor insurance law. Insurance companies use it to get details of other drivers when you’ve been involved in an accident.
If your car’s details don’t appear on the MID, you’ll be sent an Insurance Advisory Letter (IAL), unless your car has been declared ‘off road’ by Statutory Off Road Notification (SORN).
Remember, there’s a risk that your car could be seized if the correct details haven’t been registered.
Multi-car insurance
If you’ve got more than one car to insure at the same address, you could save money by taking out additional policies. Multi-car insurance usually covers different members of your household, and some policies are more flexible than others.
Premium
The premium is the price of your insurance policy. You can pay your premium yearly or spread it out over monthly instalments. An ‘additional premium’ occurs when you’ve changed your policy details – added a driver or changed your address for example. Sometimes, depending on the change, your insurer may charge you extra (due to the additional risk), which is known as your additional premium.
Settlement
What your insurer pays out for a claim.
Spouse/partner
Select ‘spouse’ or ‘partner’ if you and the additional driver you want to add to your policy are legally married or have had a Civil Partnership Ceremony.
If you’re a couple living together but are not married or have not had a Civil Partnership Ceremony, select ‘partner’.
Telematics
Telematics insurance is a way to measure your driving, with a view to check your safety while in your car. It can be known as black-box insurance, and works with a device fitted to your car or through an app on your phone. It can often help with keeping costs of insurance down for new drivers, provided they're driving safely and responsibly.
