We’ve busted baffling car insurance terms, so you know exactly what’s covered by your insurance.
Confused by some car insurance terms? You’re not alone. More than half of surveyed RAC drivers say they struggle to understand these. We’ve created a handy guide to help you, so you know exactly what’s covered in your insurance on and off the Motability Scheme.
Our car insurance jargon buster
We work together with Direct Line Motability (DLM) to give you insurance cover for your Scheme vehicle.
Here’s our guide to some of the most common car insurance terms you’ll see, both on and off the Scheme:
✅ Commonly used in all car insurance and on the Scheme
➕ Found only on the Motability Scheme
❌ Not found on the Motability Scheme
What is a claim
✅ Used in all car insurance, including on the Scheme
It’s you asking your insurer to pay for a loss you were covered for. They’ll review your claim and let you know their decision.
Why is it important?
Insurance is there to protect you. If something happens and you’re covered for it, make sure you register a claim.
Where and when you’ll see it
You’ll see this on your policy documents, and on our accidents and insurance page.
Been involved in an accident?
Report it to DLM as soon as possible and register a claim. Sign in to your Motability Scheme online account and go to ‘Insurance’.
Then visit the DLM insurance portal and choose ‘Claims’. You can also track the progress of your claim once it’s raised.
Or you can call DLM on 0300 037 3737. If it’s a new claim, you can reach them from Monday to Friday, between 8am and 7pm, and on Saturdays between 8am and 4pm.
What is insurance excess
✅ Used in all car insurance, including on the Scheme
It’s a fixed charge you agree to pay towards a claim when your application is approved.
Why is it important?
If you do have an accident, this is what you will need to contribute. It’s important to be aware of this when registering your claim.
Your insurance policy with the Scheme includes windscreen repairs, but if your windscreen needs replacing, you’ll need to pay your you’ll need to pay your glass excess. This will be lower than your main excess shown on your policy documents.
Where and when you’ll see it
You’ll see this on your policy documents. You can find the excess amount for your Scheme insurance on your Certificate of Motor Insurance.
If your windscreen needs replacing, you’ll pay an excess. We’ll take care of the rest.
What is comprehensive insurance
✅ The Scheme gives you this level of cover as part of your all-inclusive package. If you’re not on the Scheme, you can find comprehensive insurance with other insurers too.
Comprehensive insurance is the highest level of insurance cover. It insures you for damage to your vehicle, and any other vehicles you might damage in an accident. It’s sometimes called ‘fully comprehensive’.
Why is it important?
It’s extra protection for you, because it covers more than just your vehicle.
Where and when you’ll see it
You’ll see it when you’re choosing your policy. And on your policy documents.
We give you comprehensive cover on the Scheme. Other drivers who have fully comprehensive cover are not allowed to drive your vehicle, unless you add them as a permitted driver. We cover this in our Scheme-specific jargon buster later in this article.
Remember, your Scheme insurance only covers you for the Scheme vehicle you are named on.
You can see, add or change your drivers at any time in your Motability Scheme online account, under ‘Insurance’.
What is a named driver
✅ This is a common term. On the Scheme, we call them ‘permitted drivers’ on your documents.
Named drivers are the people who are allowed to drive your vehicle. They need to be listed on your insurance to be a named driver. On your Certificate of Motor Insurance on the Scheme, you’ll see we call these ‘permitted drivers’.
Why is it important?
Only drivers named on your policy are allowed to drive your vehicle. If anyone else drives it, we consider this as misuse.
Where and when you’ll see it
You’ll see it when you’re adding or changing drivers, and on insurance cover documents. On our website we just say ‘your drivers’, to keep things simple.
Want to add or change a driver?
You can easily do this in the DLM insurance portal, through your online account.
If you want to remove a driver, you can choose to ‘deactivate’ them and not delete them. This means their details will be saved, so you will not need to enter them again later.
You can add up to three drivers and can change these at any time on the Motability Scheme
What is a write-off
✅ This applies to all insurance. On the Scheme, we’ll support you if your car is written off.
It means your vehicle has been damaged to the point that repairs do not make financial sense. Or it was stolen, and you could not get it back. You’ll sometimes hear this called ‘total loss’.
Why is it important?
This can be difficult, as it means you’ve completely lost your car. If you’re on the Scheme and this happens, we’ll try to help.
Where and when you’ll see it
Your insurer will use this term if they decide your car needs to be written off.
If this happens to your Scheme vehicle, you’ll need to apply for your next vehicle within 14 days of our insurers letting you know your current vehicle has been written off.
What is a no-claims bonus
❌ This is for non-Scheme insurance. You do not build one on the Scheme, but can get a claims letter if you leave.
It’s a discount you’ll get if you do not make a claim for several years in a row. Your insurance company calculates this every year.
Why is it important?
If you’re not on the Scheme and you do not make any claims, your insurance costs could go down.
Where and when you’ll see it
If you’re not a Scheme member and you take out a new policy, you should tell your insurer about your no-claims bonus.
You will not get a no-claims bonus on the Scheme, because we own the vehicle. If you leave the Scheme, DLM might be able to give you a claims history letter.
What is a fault and non-fault claim
✅ This applies to both Scheme and retail insurance.
A fault claim is where an accident is your fault, or the insurer has not been able to recover from a third party.
If a vehicle is stolen, has rodent damage or hit whilst parked, it may not be necessarily be your fault, but as there is no third party to reclaim costs against, it will be an ‘at fault claim’ despite it technically not being the insured’s fault.
A non-fault claim is where the insurer has been able to recover all their costs against a third party.
Why is it important?
Who’s at fault matters, as it affects whether you’re liable to pay your excess and damages added to your claims history.
Where and when you’ll see it
Insurers will use this language while they’re handling claims, and in their decision, including DLM.
Your Motability Scheme insurance jargon buster
➕ Each term in this section is found only on the Motability Scheme.
You’ll see terms in your Scheme documents and our website that are unique to the Scheme. Here’s our guide to those terms:
Direct Line Motability
We work together with Direct Line Motability (DLM) to give you insurance cover for your Scheme vehicle. It’s run by Direct Line.
Why is it important?
DLM cover you if something happens, like an accident. Check your insurance cover booklet to see what’s covered. You can also explore answers to common insurance questions.
Where and when you’ll see it
You’ll see this on our website and when you make a claim with DLM.
Permitted drivers
Permitted drivers is another name for people who can drive your vehicle. You’ll often hear this called ‘named drivers’ too.
Why is it important?
Only these drivers are allowed to use your vehicle. You can add or change your drivers in your Motability Scheme online account.
Where and when you’ll see it
There’s a section about your drivers on your Certificate of Motor Insurance, with this name.
Replacement travel
Replacement travel is what we’ll do to keep you moving, if you cannot use your vehicle temporarily. It could include a replacement vehicle, like a courtesy car from your repairing garage, or a taxi to get to your appointments, or something else. This is sometimes known as continuous mobility.
Why is it important?
It’s important we keep you moving while your car is off the road. We’ll do our best to give you as suitable a replacement as soon as possible, or we’ll offer you other solutions for your essential travel needs.
Where and when you’ll see it
You’ll see this on our website, and when you’re talking to us about your replacement travel options.
If your car is off the road, we’ll do our best to keep you moving with a suitable replacement
Get to know these terms
If you do, you’ll be well prepared when you take out insurance and read your policy documents.
Look back at our jargon buster from time to time, to refresh your memory. And look out for our other guides. We’re always creating content to help make things simple.
If you get a vehicle on the Scheme, we’ll arrange your insurance as part of your all-inclusive package. We also cover your servicing and give you breakdown cover.
You can do a lot in your Motability Scheme online account
It’s the simplest way to register a claim and add or change your drivers. Just sign in and go to ‘Insurance’. Then visit the DLM insurance portal.
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Everything you need to know about your drivers on the Motability Scheme
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