UK motor insurance glossary

A to Z of terms

Certificate of motor insurance

The legal document proving a vehicle is insured for a named driver and period. Only the insurer can issue one, and you are not on risk until it exists.

Policy schedule

The document listing who and what is covered, the dates, the excesses and any endorsements applied to your policy.

Motor Insurance Database (MID)

The central UK record of insured vehicles, queried by police ANPR cameras. The insurer files the entry, usually within minutes of issuing a policy.

Excess

The amount you pay towards a claim before the insurer pays the rest. Compulsory excess is set by the insurer; voluntary excess is anything you choose to add.

Comprehensive cover

Cover that includes damage to the vehicle you are driving as well as third-party liability. Most short-term policies are written on this basis.

Third-party only

The legal minimum: injury or damage you cause to other people and their property, with nothing for your own vehicle.

No-claims discount (NCD)

A discount an insurer applies for claim-free years on an annual policy. Short-term policies are standalone, so a claim on one does not touch the vehicle owner's NCD.

Insurance Premium Tax (IPT)

A UK government tax charged on general insurance premiums, currently 12% for motor cover. It is included in the premium the insurer quotes.

Class of use

What the vehicle may legally be used for under the policy — social and domestic, commuting, or business use. Driving outside your class of use can invalidate cover.

Hire and reward

Carrying goods or passengers for payment, such as taxi, private hire or courier work. Excluded from standard policies and needing a specific product.

Named driver

A person listed on someone else's policy. Different from a standalone short-term policy, which is a contract in your own name.

Provisional licence holder

A learner driver. Cover requires supervision by a qualified driver meeting the insurer's age and licence-held conditions, and L-plates displayed.

Material fact

Any information that would affect an insurer's decision to offer cover or the price it charges. Getting one wrong can void the policy entirely.

Voided policy

A policy treated as though it never existed, usually because of a material misstatement. The driver is then uninsured for the whole period, retrospectively.

Underwriting

The insurer's process of assessing a risk and deciding whether to accept it, on what terms and at what premium.

Acceptance criteria

The rules an insurer applies before it will quote at all — driver age bands, licence type and duration held, vehicle value and weight, postcode and claims history.

Impound release insurance

A policy meeting police and recovery-operator requirements to release a seized vehicle, typically needing a minimum 30-day term.

Green card

An international certificate of motor insurance, still required in some countries as proof of cover when driving abroad.

Cooling-off period

The 14 days from purchase in which you may cancel a distance-sold insurance contract under the Consumer Contracts Regulations 2013.

Minimum premium

The lowest amount an insurer will retain on a policy. On very short policies a pro-rata refund can be reduced to nothing by it.

Endorsement

A clause added to a policy that changes the standard cover — for example restricting use or imposing an extra excess for a young driver.

Fault claim

A claim where the insurer cannot recover its outlay from another party. It affects future pricing even when you were not to blame in everyday terms.

Total loss

Where repair cost exceeds the vehicle's value, so the insurer settles at market value instead of repairing.

Indicative estimate

The figure Bluebird shows before a request is forwarded. It is our estimate of a likely premium, not an offer of insurance and not binding on any insurer.