Additional Insured: The additional insured is a party named on the car insurance policy that is insured in addition to the primary driver of the policy. If the car is being leased, the leasing company would be named as the additional insured. If the car is being financed, the finance company would be named as the additional insured.

Anti-Theft Device: A device, such as an car alarm, that reduces the risk that the car will be either stolen or vandalised. Anti-theft devices lower the risk of a claim, so a discount is usually given to cars that have one installed.

Comprehensive Insurance: Comprehensive insurance will cover damage done to your own car and damage done to other people’s property if you car is involved in an accident. The policy will cover only the insured, so if someone else is driving your car, they must be covered under your policy in order to file a claim.

Consumer Credit Insurance: This insurance will help you meet your loan payment requirements should you become sick, injured or unemployed.

Inception Date: The inception date is the date that the car insurance policy comes into effect.

Excess: The excess is the amount of money that you have to pay should you file a claim. The higher your excess is, the lower your car insurance premium will be.

Expiration Date: The expiration date is the day that the car insurance policy will expire. At this point you can choose to either renew or cancel your policy.

Gap Insurance: If the car is a write-off, gap insurance will pay off the balance of the loan after the comprehensive insurer makes a payment to the creditor.

Hit and Run: A hit and run occurs when your car collides with something or someone and you leave the scene of the accident without reporting it to the authorities.

Loss Payee: Should your car become damaged in an accident, the loss payee is the entity who will receive the payment from your insurance company.

Mechanical Breakdown Insurance: This insurance will cover the costs of certain types of mechanical breakdowns of your car.

Multi-Car Discount: A multi-car discount is a discount often given to people who are insuring more than one car with the same car insurance company.

Pay-Per-Month: Pay-per-month premiums allow you to pay the premium of your car insurance over a number of months rather than having to pay the premium at once in one lump sum. While there might be an extra fee for your car insurance company to arrange pay-per-month payments, it is a way of aiding cash flow and making insurance more affordable.

Policy: Your policy is the agreement between you and your car insurance company that outlines the terms and conditions of your car insurance coverage.

Policy Period: The policy period is the time between the beginning and end of your car insurance policy.

Policy Holder: The policy holder is the primary insured and the person who holds the car insurance policy.

Premium: Your premium is the amount of money you pay for your car insurance.

Rating 1 Protection: For an additional premium, Rating 1 drivers can obtain insurance that will protect their Rating 1 status even if they are in an at-fault accident.

Renewal: The renewal occurs at the end of your car insurance term when your current policy expires.

Rental Reimbursement: Rental reimbursement insurance covers your costs should you need to rent a car while your car is being repaired due to an accident.

Term: The term of your car insurance policy is the time between the effective date and the expiration date.

Third-Party Extended Cover: Third-party extended cover will cover damage to your car done by fire or theft, whether the damage was caused by you or by another person. The cost of this type of insurance will vary from insurer to insurer.

Uninsured Motorist Extension: Damage done to your car is not covered by third-party property policies. Some companies will cover you for a limited amount if you were not at fault and the driver to cause the accident was uninsured. This insurance is an extension of third-party property insurance and is a good option if you cannot afford full comprehensive insurance. However, this type of policy will only cover you if you can identify the person who caused the accident and the damage to your car.