| You can use our glossary
to find the definitions of many terms you will come
across when arranging a secured homeowner loan
Click on a letter A to Z for terms beginning with that letter
K
Knock for knock
an arrangement between insurance companies to cut down on paperwork and legal action,
whereby insurers pay for the costs of claims for their own customers, rather than claiming the money from
the other party.
L
Lapse
termination of an insurance policy because of non-payment of premiums
Legal expenses insurance
a provision in some insurance that covers the costs of private legal action, for instance
if the party at fault in an accident refuses to accept blame.
Loading
the extra charged on a standard premium to an individual for reasons such as bad claims history.
Loss
insurance term for being robbed, burgled, injured or in a car accident.
Loss adjuster
an independant party who may be used to assess the value of a claim, especially if the insurer and
insured disagree.
M
Main driver
the person who uses the vehicle most.
Market value
the cost of replacing your car with one of a similar make, model, year, mileage and condition,
based on market prices at the time of the loss.
Material fact
information that would affect an insurance companies assessment of an insurance application, such
as previous driving convictions. Failure to disclose material facts may lead to invalidation of the policy.
MIB (Motor Insurers' Bureau)
deals with claims for injury compensation when the driver at fault is uninsured or cannot be traced.
Motor schedule
a document that details your policy,
excesses, endorsements and premium specific to your
insurance.
N
Named driver
a driver who is specified on the policy, but is not the owner.
No claims bonus
the discount that you have earned on a previous policy.
No claims discount
this is an insurance discount based on the number of
years that you have not had any claims.
Non-cancellable
the insurer cannot change or revoke the insurance unless the insured does not pay their premiums.
Non-fault claim
the insurer recovers all the costs from another party.
O
Optional extras
other products available with your car insurance, such as breakdown cover.
Ordinarily resident
you live in this country year after year. Most policies require you to be ordinarily resident.
Owner
the legal owner of a vehicle. This is not always the person who runs, maintains or uses it.
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Car insurance guide
