Accidental damage
Damage to your own vehicle by accidental means as opposed to
fire or theft. Usually subject to a policy excess for each
claim.
Agreed Value
The value of the vehicle is agreed by underwriters at the start
of the period of insurance, rather than calculated at the time of a
claim, less any excess applicable.
Buyer beware
Or Caveat Emptor if your Latin's up to scratch! Good advice for
us all when we're swayed by that nice shiny paintwork. It's worth
remembering that it's up to the buyer, not the seller, to make sure
everything is as it should be. Certainly the seller is required not
to mislead you in any way - but after that, you're on your own.
Certificate
Your current valid Certificate of Motor Insurance. The document
which is legal evidence of your insurance and which forms part of
this document and which must be read with this document. A cover
note is a temporary for of certificate, usually valid for 30 days
only.
Cherished car
A vehicle that is acceptable under our scheme must be older than
20 years (25 years in the case of classic commercials) and to
standard factory specification. A very limited selection of
vehicles between 10 and 15 years old are also able to be covered,
but are subject to underwriters approval.
Cherished number plate
Registration numbers issued by DVLA in the UK, which may be rare
or unusual, often spelling names or places. Some may be very
valuable as they are able to be transferred from car to car, but in
some instances following a total loss this may be disallowed. We
offer cover for this contingency if required. Please ask.
Claim
Any incident that may rise to a payout, or indemnity under a
policy.
Driving Other Cars
The ability to drive another vehicle which is not owned by
yourself, giving Third Party only cover (ie. no damage to the car
you're driving is covered). Fast becoming obsolete due to stricter
police and DVLA regulations, and not covered under a Cherished Car
policy.
Endorsements
An endorsement refers to any variation or addition to the terms
of your policy. You can refer to your policy statement for a list
of any endorsements that apply in your case. Don't worry - there is
nothing untoward about having endorsements on your statement - and
you can always speak to a Towergate advisor for further
clarification.
Excess
The amount of any claim you will have to pay if your car is
lost, stolen or damaged. An Excess does not apply when your Motor
Car is in the hands of a member of the motor trade for servicing or
repair, or in the hands of an employee of a hotel or restaurant for
the purposes of parking. Be careful that your excess is appropriate
for your level of insurance. Talk to Towergate if you're not
sure.
Fire
A policy term that actually also encompasses Lightning and
Explosion, as well as fire itself; although these are rare, they
can happen!
General conditions
Conditions that apply to all sections of the policy which must
be read in conjunction with other sections.
High risk
A term that is often used to describe a vehicle that is of
either excessive value or performance (or often both!) The
important thing to remember is that failure to disclose any
information pertaining to risk may help keep your premiums down,
but could void your policy.
Immobilisation warranty
Mainly required for rare or expensive vehicles.
Legal expenses
Often bundled as part of an Uninsured Loss Recovery extension,
covering solicitors fees incurred as a result of an accident or
incident connected with the vehicle.
Laid up cover
Cover for a vehicle that does not include road risks, so is
unable to be driven on the public highway or any other area to
which the public have access. Often used for winter storage.
Limited mileage
The term given to a motor policy that restricts the maximum
mileage you are allowed to cover, in return for a reduced premium.
The Towergate Cherished Car policy allows for up to 7500 miles in
certain cases, or as little as 1500, according to individual
requirements.
Market Value
The cost of replacing your car with one of the same make, model,
age, type and condition and mileage. Often applied in place of an
Agreed Value clause when value cannot be satisfactorily established
at the inception of the policy.
Malicious damage
Cover for malicious damage is included part of Comprehensive
policies. That gives peace of mind that any damage caused by
‘malicious persons' will be covered in the event that your vehicle
is broken into, or any damage caused to the exterior by such
persons.
Material fact
A material fact is a piece of information that would directly
influence an insurer in assessing and setting your premium - and
must be disclosed. Failure to divulge any material fact could
invalidate your policy. Safety first - if you're in any doubt as to
whether something constitutes a material fact, talk to
Towergate.
MID
The Motor Insurance Database, an independently operated database
of all insured cars in the UK, which is accessible by the police.
Insurers are bound to supply certain data to the MID within a
maximum of 14 days from inception of insurance cover.
No-claims bonus
A premium discount that takes account of the number of years
claim-free driving gained by the policyholder. It is important to
note it is a no-claim, not no blame bonus, meaning if your insurer
pays out for a loss and the outlay is not recoverable, then the
bonus will be lost. It is often possible to protect against this
for a small additional premium, but Towergate Cherished Car
policies are not subject to a no-claims bonus.
Non standard
Refers to a risk that may be outside the insurer's usual limit
of acceptance and often refers to a vehicle that has been modified
in some way. For example, lager alloy wheels or sports exhaust.
Overseas use
Our Cherished Car policy covers up to 90 days use abroad in any
one year, principally in EU countries, but may be granted
permission to travel outside these territories subject to
underwriters prior approval.
Period of Insurance
The period of time covered by the policy as shown in the policy
schedule and any further period for which the insurer agrees to
insure you.
Personal Injury Cover
The name for a fixed sum payable to injured driver or passengers
following an accident. Under the Towergate Cherished Car policy it
is 5,000 GBP.
Policy
Policy is the name sometimes given to your contract of
insurance. It refers to the level of coverage that you have agreed
with your insurer, outlines the terms, and details any particular
conditions that you need to be made aware of, or that you need to
make your insurer aware of.
Proposal form
The basis of the contract between you and insurer. An insurance
contract is based on Utmost Good Faith, which means you are duty
bound to answer all questions correctly to the best of your
knowledge. Failure to do so may invalidate cover.
Renewal
The process by which you as a policyholder are invited to
reinsure for a further year, with terms being issued at least 6
weeks prior to your renewal date.
Reinstatement
Where the vehicle repair cost following an insured incident is
deemed uneconomic (see Total Loss), provided Reinstatement cover
has been bought, this will allow for up to an additional 50% in
respect of those repairs.
Salvage
Following the settlement the paid out at the resolution of a
claim, you will usually be allowed to retain the vehicle salvage at
a nominal cost, subject to prevailing legislation regarding motor
vehicle salvage. This is especially important where the vehicle is
rare or of historical importance.
Theft
Theft, or ant attempt thereat. Important to know, as in many
instances thieves are disturbed, thereby leaving lots of damage -
although the car itself may not have been stolen.
Total Loss
The situation where the repair cost versus the vehicle's value
renders repairs uneconomic, thus 'writing off' the vehicle as a
total loss, generating payout of the Agreed Value shown on the
policy schedule, subject to any excess.
Underwriting
Underwriting is the process that insurers go through when
assessing any new risk for insurance cover. They have to consider
any vehicle risks or material facts regarding drivers and the area
in which you live that have been brought to their attention and
formulate their terms based upon these.
Use
A private motor policy limits use to Social Domestic and
pleasure purposes, with commuting to and from a fixed place of work
added in. Any business use is excluded under our Cherished Car
policy.
ULR
Or Uninsured loss recovery. The process by which your uninsured
losses in the event of a no-fault accident are recovered for you.
For example, your excess is an uninsured loss and you would not
wish to have to forfeit this if the accident was not your
fault.
Vehicle security
Some high value or high risk vehicles will be required to have
additional levels of security in place before underwriters will
quote terms, such as a Thatcham approved alarm/immobiliser, or a
Tracker system.
Warranty
A policy condition that must be complied with to the letter, for
example, a Garaging Warranty, whereby the vehicle must be in a
locked garage between the hours of 2200 an 0600 unless in the
course of a journey. No cover would operate if this strict warranty
was not complied with.
Windscreen
Actually not just the front screen, all fixed glass is covered
under this term. An excess usually applies to any claim, but any
no-claims bonus will be unaffected (although our Cherished Car
policy is not subject to no-claims bonus).
