Motor Insurance Glossary

Motor Insurance: Glossary of Terms

Accessories
Accessories are classed as the additional or supplementary parts of your vehicle which are not directly related to its function as a vehicle, for example radios and other in-car entertainment.

Agent
An Agent is someone who acts on behalf of a company selling insurance. Ibex has over 250 Agents based in Spain, Portugal and Gibraltar, giving you the option to choose a face to face service to arrange your cover.

Claim
A claim is the process of notifying your insurance company of an event, such as an accident or theft, where you wish to claim on your insurance policy. A claim may also be made against your policy by a third party, such as another motorist that you have been involved in an accident with. If you are in an accident it is essential that you complete the Accident Statement which is enclosed with your policy.

Comprehensive Cover
Comprehensive, is also known in Spain as 'all risks'. This covers your liability towards third parties for injury or property damage; it also covers your own car against any kind of accidental damage even if it is caused through your own fault.

Endorsement
This refers to changes in the terms of your cover as shown in the schedule.

European Accident Statement
This form is issued with your policy and is to be filled in in the event of an accident.

European Green Card
A Green card is an international motor insurance certificate. It is proof that you have the minimum cover you need by law to use your car in any country which is a member of the European Union and any other country which meets the requirements of EC Directives on insurance.

Excess
This is the standard amount you must pay towards any claim. Choosing a higher Voluntary Excess can help to lower your premium.

Exclusions
Exclusions are instances where a claim cannot be made and are stated in your insurance policy.

Financial Services Commission
The Financial Services Commission is the financial regulating body for Gibraltar. The FSC provides financial services regulation to companies in order to protect the public from financial loss and enhance Gibraltar's reputation as a quality financial centre. Visit www.fsc.gi for further information.

ITV
An ITV is the equivalent to an MOT in the UK and is required by Law. As with an MOT a number of checks are carried out on your vehicle to check that it is safe to drive and road worthy.  Once your car is 4 years old, you will need an ITV carried out every two years.  Once it is over 10 years old an ITV will be needed annually.   For Motorcycles over 5 years old, an ITV is needed every 2 years and for caravans over 6 years old, an ITV is needed every two years.

Key Facts
The Key Facts provide you with a summary of cover; they have been designed to give you the main benefits and exclusions to assist in your decision. Please refer to your Policy Documents for full details of cover.

Legal & Breakdown Cover
This is an optional cover providing you with breakdown and recovery services. It also provides legal representation if you have been involved in any road traffic accident or event which is not your fault and arises out of the use of your motor vehicle. This also assists in the recovery of losses which you are not able to recover under your associated motor policy, e.g. Policy Excess, Personal Injury, and Damage to your vehicle. 

Market Value
The cost of replacing your vehicle with another of the same make and model and of a similar age and condition at the time of the accident or loss.  We can assist you with setting a value for your car which in turn could help to lower your premium.

Medical Conditions
Certain medical conditions preclude you from driving. If you have a medical condition and you are unsure as to whether you should drive, please contact us today to see if you are affected. If this is the case, you may not be eligible for car insurance cover. If you fail to disclose a medical condition to your insurer your car insurance may not be valid.

Named Driver
This is a driver named on an insurance policy who is not the main driver of the vehicle.

New Vehicle Replacement
If your car is a total loss, we will replace your vehicle with a new vehicle of the same make and specification subject to availability and terms and conditions which are outlined in the Motor Policy Document.

No Claims Discount/No Claims Bonus
This is a discount offered at the time of renewal to an insured person who has made no claim in the previous period or periods of insurance. A No Claim Discount is a discount that is offered for not making a claim, so even if the incident which resulted in a claim is not your fault, your No Claim Discount can be affected.

Policy
This details the contract between an Insurance company and the policy holder. Your Ibex policy will consist of your Policy Booklet, Schedule, Motor Proposal Confirmation and Certificate of Motor Insurance.

Premium
This is the money you have to pay in return for your insurance cover. Your premium must be paid in order for your insurance to be valid.

Risk
Motor insurance is offered by assessing a proposers risk. This is achieved by looking at the details provided and determining how likely the driver is to make a claim and how much such a claim would cost to settle. This is usually worked out by an Underwriter, who uses their knowledge of claims along with statistical analysis and actuary tables to calculate the level of risk and to decide what premium you should pay.

Road Traffic Acts
Any acts, laws or regulations which govern the driving or use of any motor vehicle.

Schedule
This is the document which identifies the policyholder and sets out details of the cover your policy provides.

Third Party, Fire & Theft
This includes cover against fire, natural hazards, theft, broken glass, legal expenses and possibly damage or theft of fixed items (e.g. stereo).

Third Party Only.
This is the minimum cover required by law and covers you for damage or injury to a third party.

Voluntary Excess
You can select a voluntary excess which you will pay on top of your standard excess. The amount of your Voluntary Excess is deducted from the claim payment which you receive. Selecting a Voluntary Excess will help to reduce your premium, however you should not choose a level higher than you are able or prepared to pay.

Underwriter
An underwriter decides on whether to insure you (and accept the risk) and what premium you should pay.

Uninsured Loss
This is a loss that you're not able to recover under your policy, for example loss of earnings after you were involved in an accident.