4x4 Insurance Glossary Of Terms
Some common 4x4 insurance policy items and glossary of terms:
Agreed value: If you have added lots of accessories or worked hard on major modifications to your 4x4 you may wish to have the insured value of your vehicle reflect it's true worth. Sureterm Direct Insurance can include an Agreed Value upon request at no additional cost on most 4x4s.
Approved repairer: A repairer we have approved and authorised to repair your 4x4 following a claim.
Betterment: Where the results of repairs or replacement due to the loss of your 4x4 results in the insured receiving something better than he had before the loss. The difference is known as "betterment." In most instances, this difference is discussed before the repairs or replacement is made and the insured has agreed to an appropriate figure as to his contribution for this "betterment." This is also referred to as "new for old."
Compulsary Excess: If you make an insurance claim, this is the amount you agree to pay yourself to repair your 4x4.
European Use / Green Card: If you drive your 4x4 abroad, this is insurance designed to make it unnecessary to apply for insurance at the border of each country. It confirms that you have at least the minimum legal insurance cover.
Insurance: The transfer of risk by an individual, such as yourself, for your 4x4, or an organisation, such as your business, to the insurance company. You or your organisation will thus be known as the policy holder for the 4x4. The insurance company receives payment in the form of a premium and will compensate you in the event of losses or damages sustained by you or your 4x4.
Legal Expenses Insurance: An optional extra to your 4x4 insurance to meet legal and recovery costs for your "uninsured losses" resulting from an accident. For example, you may need to sue the Third Party for recovery of your out of pocket excess after an accident involving your 4x4. You may also have had to hire a 4x4 or may need to obtain compensation for an injury arising from an accident, which was not your fault. Such things are not always covered under your 4x4 insurance policy itself. A legal expenses policy to meet those legal costs is a must.
Liability Cover for Trailers and Caravans: This is the same as purely Third Party Only Cover - If you are even partly to blame for an accident then your insurance company will pay for the other persons 4x4, car or property and also for any injury to them. Whilst the caravan or trailer is attached to the 4x4, the caravan or trailer is covered Third Party Only. Sureterm also covers accidental damage, fire and theft for caravans.
Limited mileage: If you don't drive excessive miles in your 4x4, Sureterm Direct Insurance allows you to have a cheaper premium based upon an agreed maximum annual mileage.
No-Claims Bonus: You get a discount on your insurance premium if you drive your 4x4 without making a claim on its insurance. It is sometimes possible to pay extra to protect your bonus in the event of a claim.
Proposal Form: The proposal form is the basis of the contract for insurance on your 4x4. It is probably the most important aspect of the cover process. This form may be a written hard copy form or may be taken from the entered details on the system. As insurance is an intangible product whose price is based on the information provided by you then any errors or non-disclosure of material facts can result in the policy being voided. Check with your insurance advisor if you have any difficulties or need advice. Also, if you know of something, which the Insurance Advisor ought to know, but the proposal form doesn't ask that question, do not think that you do not have to tell them. You have a legal duty to disclose all facts.
Off road use: It is not usual for policies to cover 4x4 off road use. You need to check before buying you policy if this is something you will need. It is not easy, or cheap, to get insurance cover for 4x4 competition use. Actual competition events often offer insurance cover for the specific event on the day. However, Sureterm 4x4 Insurance will cover you for Greenlane Cover. Greenlaning Insurance is where you are covered for driving down Greenlanes. Don't know what a greenlane is? - Greenlanes are unsurfaced minor highways, often covered in grass (hence the name!) and are like public bridleways for 4x4s.
Salvage retention: Your 4x4 may be declared a write-off. Sureterm Direct Insurance allows as standard a buy back option to buy back the wreckage in the event of a major accident. In some cases however, the 4x4 is so badly damaged that the insurance company is required by law to have the vehicle destroyed.
Voluntary excess: You can sometimes get a cheaper insurance premium on your 4x4 by arranging to pay an agreed sum in the event of a claim.
Windscreen Cover: Windscreens are only covered under Comprehensive Private car policies through Sureterm Direct Insurance and are subject to different excesses than the main policy. A damaged windscreen on your 4x4 (i.e. scratched) may not have any excess if repaired by the approved Insurers Windscreen Company. Windscreen claims rarely affect the no claims bonus.
To offer you even better rates, Sureterm can give you an additional 15% discount on your 4x4 insurance if you are a member of a 4x4 owners club. Please call us to get the very best 4x4 insurance quote for your 4x4.
Call now on 0800 999 2030 for a FREE 4x4 insurance quote and learn about the savings and the increased 4x4 insurance policy benefits we offer.
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