Car insurance terms explained

If you’re not an expert in insurance then it can be easy to get baffled by some of the terms, jargon and lingo used by insurance brokers in their quest to persuade you to take out insurance with them.

So if you don’t know your Protected Bonus from your Misfuel Cover, this guide should help keep you informed.

What is Agreed Value?

Some insurance policies guarantee your car at an agreed value, instead of market value. This is most common with modified and classic cars. The agreed value is the amount your insurer agrees to pay out in the event of your car being written off.

What is Breakdown Cover?

If you have Breakdown Cover and your car breaks down, you will get some form of roadside assistance. This can vary from fixing your car at the side of the road, transport home for you and your vehicle and sometimes, onward travel.

What is Courtesy Car Cover?

If you have Courtesy Car Cover then your insurer will supply you with an alternative vehicle while yours is being repaired. Normally Courtesy Car Cover is included in Comprehensive policies but not always, so check with your insurer if it is something you want.

What is Driverguard?

Driverguard is a form of licence protection from Flux. It means that should you lose your licence, alternative travel arrangements will be covered.

What is Foreign Use?

Lots of insurance policies, usually Comprehensive, include Foreign Use cover. This generally allows you to drive abroad in the EU for up to 90-days, however most policies do not allow for multiple foreign trips.

Smart Car in yellow

What is Gadget Cover?

Some insurers will offer you the chance to buy Gadget Cover as an optional extra. As the name suggests, this covers you if any gadgets in your car are damaged or stolen and applies to items like laptops, cameras, mobile phones or satnavs.

What is Handbag Cover?

Handbag Cover is an option that some insurers provide and is generally targeted at female drivers. It means you will get additional cover if your handbag is stolen or damaged and you make a claim.

What is Home Start?

Home Start is one form of Breakdown Cover and it means that if your car will not start at home, you can get assistance through your cover. It is usually an optional extra on most policies so not all Breakdown Cover options will provide it.

What is Keycare?

Keycare is another optional extra on most insurance policies and means that if your keys are lost or damaged, you can claim a new set for free.

What is Legal Expenses Cover?

Legal Expenses Cover means that if in the event of a claim you need to pay costs, either after being sued, to pursue uninsured losses or to cover court costs, your insurance will cover it instead of you.

What is Misfuel Cover?

Misfuel Cover means you can make a claim to your insurer if you manage to put the wrong fuel into your car – a potentially terminal but mostly costly mistake.

What is Personal Accident Cover?

Personal Accident Cover gives compensation in the event of death or specific injuries sustained in a road accident when you can’t claim from a third party. It will not apply to all injuries so it’s worth checking what is covered. It is usually an optional extra.

What is Personal Injury Cover?

Personal Injury Cover is the same as Personal Accident Cover.

Skoda Octavia estate in white

What is Bonus Protection?

Some insurers allow you to protect your No Claims Bonus (NCB). Usually this protection allows you to have two accidents which are your fault without losing your NCB.

What is Roadside Recovery?

Roadside Recovery is the most basic from of Breakdown Cover. It means that if you breakdown on the road, your car will either be fixed at the side of the road or recovered and taken to a garage for repair.

What is Total Loss Protection?

Total Loss Protection means you don’t have to rely on market value in the event of your car being written off. In the event of your car being written off, your insurer will usually payout the market value of your vehicle. Total Loss Protection means you will get that market value amount, plus a fee of as much as 25 per cent, depending on your policy.

What is Windscreen Cover?

Windscreen Cover allows you to claim for the repair or replacement of your windscreen if it is damaged. It does not just apply to your windscreen but also side and rear windows.

Onward Travel

Onward Travel is one of the top-end forms of Breakdown Cover. It means the cost of onward travel is covered by your insurer in the event of a breakdown where your car cannot be repaired. It is there to limit the impact of your breakdown.

Vehicle Recovery

Vehicle Recovery is another form of Breakdown Cover where your vehicle is picked up and taken to your home or a garage of your choice for repair.