This is when an insurance policy is terminated due to non-payment of the associated premium.

A policy terminated for non-payment of the associated premium.

This is the cover included in some types of policies e.g. motor and home insurance which protects the Client if someone should want to take legal action against them.

There can be deemed a standard or average rate for a persons insurance, the loading is effectively what an individual will be charged in excess of this for their insurance.

Insurance terminology to mean being robbed, burgled, injured or in a car accident. A loss gives rise to a potential claim.

An independent third party usually used by an insurance company to assess the value of a claim, usually if there is a disagreement between the insurer and the insured.

The person who uses a vehicle the most.

This is the cost of replacing a car based on the market price at the time of the loss.

A material fact is information that would affect what an insurance company's attitude may be to insuring a risk, or the premium it would charge. Failing to disclose a material fact could invalidate a policy and is the responsibility of the client.

This is a document which contains the details of your policy including any excesses and endorsements that is specific to your insurance. It should be read in conjunction with a policy document.

A driver who has been named on an insurance policy but who is not the owner of the vehicle.

Rather than pay the market value of a new car involved in a total loss, some insurers might replace it with an identical new car. If it is a brand new vehicle the market value of this vehicle will have depreciated so much in the first year, that it would leave the policy holder unable to replace the car.

This means that in the event of a claim, the Client is paid the money needed to buy the items in the shops at today's prices, regardless of the age or original purchase price of the item.

A no claims bonus (or NCB) is the discount that you have earned on a previous insurance policy for not making a claim. These discounts are determined by the number of years that you have not made a claim.

This is a claim whereby the insurance company is able to recover all the costs from another party.