Fleet insurance glossary: the A to Z in plain English

A vehicle value fixed between the policyholder and the insurer when cover starts, instead of a market value worked out after a loss. It is more common for specialist, converted or high-value vehicles, and the insurer may ask for photos or a valuation first.

A driver basis that lets any driver the business authorises use the insured vehicles, within the age and licence conditions set out in the policy. More detail is in our guide to any driver fleet insurance.

A garage the insurer works with to repair vehicles after a claim. Some policies allow a business to use its own garage instead, though that can change how the claim is handled or whether a repair warranty applies.

Someone the business has given permission to drive a fleet vehicle and who falls within the driver terms on the certificate and schedule. A written company driving policy usually sets out who counts as authorised and how that is recorded.

A firm that reviews a business's fleet, approaches insurers on its behalf and arranges the cover. Brokers are paid by commission, a fee or both, and many concentrate on particular trades or vehicle types.

The class of use for driving in connection with a business, such as visiting customers or travelling between sites. On its own it does not normally include carrying paying passengers or delivering other people's goods for payment.

Cover for vehicles carrying goods, tools or materials that belong to the business itself. It is the usual class of use on van fleet insurance for trades, and differs from hire and reward, where the goods belong to someone else and the carriage is paid for.

The document that proves motor cover is in force. It shows the policyholder, the vehicles or vehicle description covered, who may drive and the permitted uses, and a driver may be asked to produce it.

A record from the current or previous insurer listing claims over a set period, with dates, amounts paid and amounts still held in reserve. Fleet insurers rely on it when pricing a renewal or a new quote, and our claims experience letter walkthrough shows how one is laid out.

The widest level of motor cover, normally including damage to the insured vehicle as well as third party liability, fire and theft. The exact cover, excesses and exclusions still depend on the policy wording.

The part of each claim the policyholder pays that is set by the insurer and cannot be removed. It can differ by vehicle type, driver age or type of claim, and is added to any voluntary excess.

Cover that may respond if an employee's own vehicle is used for work and the employee's personal insurance fails to deal with a claim brought against the employer. It sits behind the driver's own policy and does not replace it, which is why it often comes up with grey fleet insurance.

A replacement vehicle, often a small car, supplied while an insured vehicle is repaired by an approved repairer. Many fleet policies limit or exclude it for vans and larger vehicles, so the schedule is the place to confirm it.

An arrangement where a non-fault driver is given a replacement vehicle by a hire company, which then claims the hire cost from the at-fault driver's insurer. These costs can be high and often appear on a fleet's claims record as a third party payment.

The information a business gives an insurer when buying or renewing cover, such as vehicles, drivers, claims and convictions. Missing or wrong information can lead to a claim being reduced or refused, which is why a quote readiness checklist is worth working through first.

The way a policy defines who can drive, such as named drivers only, any authorised driver, or any driver above a set age. It affects both the premium and how easily a business can add new staff.

An extension that lets a specific person drive vehicles not listed on the policy, usually with third party cover only. Fleet policies often restrict it to named directors or partners, where it is offered at all.

A change or condition added to a policy that alters the standard wording, such as a security requirement or an excluded vehicle. Endorsements are listed on the schedule and apply just as much as the main terms.

The amount the policyholder pays towards a claim before the insurer pays the rest. Fleet policies may carry different excesses for accidental damage, theft, windscreen claims and young or inexperienced drivers.

A person the policy specifically does not cover, even if they would otherwise fall within the driver terms. Insurers sometimes exclude a driver with serious convictions instead of declining the whole fleet, a situation covered in our guide to convicted driver fleet insurance.

A claim where the insured driver is held responsible, or where the insurer cannot recover its costs from anyone else. Fault claims usually weigh more heavily on future terms than non-fault claims.

The first report of an accident or incident to the insurer or its claims line. Prompt reporting helps the insurer control third party costs, and a driver accident card keeps the right details in every cab.

A group of vehicles insured together under one policy for a business, instead of on separate individual policies. The number of vehicles needed to qualify varies between insurers, as explained in our guide to multi-vehicle fleet insurance.

Cover for loss of or damage to goods while they are being carried, loaded or unloaded. It is separate from motor cover and is common for couriers, removals firms and hauliers, including those looking at courier fleet insurance.

Vehicles owned by employees and used for business journeys, such as a member of staff driving their own car to a client meeting. Employers usually take an interest in whether those drivers hold business use cover, which is covered in our guide to grey fleet insurance.

Use of a vehicle to carry passengers or other people's goods in return for payment. Taxis, couriers and hauliers need cover that includes it, as standard business use does not; see taxi fleet insurance for one example.

A tax charged on most general insurance premiums in the UK, including motor and fleet cover. It is included in the price quoted and shown on the policy documents.

The company that carries the risk and pays valid claims under the policy. A broker may arrange the cover, but the insurer issues the policy and makes the final decisions on acceptance and claims.

Optional cover for legal costs, such as recovering uninsured losses after a non-fault accident or defending a motoring prosecution. Limits and the types of dispute included differ between policies.

A change made to a policy before renewal, such as adding a vehicle, removing one or adding a driver. It usually leads to an additional or returned premium, often worked out pro-rata.

A fleet policy aimed at businesses running only a handful of vehicles. The smallest fleet an insurer will accept varies, and our guide to mini fleet insurance explains how these policies usually work.

The youngest age at which a driver is covered under the policy. Fleet policies often set a minimum for all drivers, with higher excesses or exclusions for younger drivers above that age.

The central UK record of insured vehicles, used by the police and others to check whether a vehicle has cover. Fleet policyholders are responsible for keeping their vehicle details on it up to date, often through the broker or an online portal.

A specific person listed on the policy as permitted to drive. Named driver fleets suit businesses with a stable team, while businesses with changing staff often look at an any driver or open driving basis instead.

A discount built up for each claim-free year on an individual motor policy. Fleets usually do not use it, because insurers look at the whole fleet's claims experience instead, which shows how often claims happen and what they cost across every vehicle.

A claim where another party is responsible and the insurer can recover its costs from them. It still appears on the claims experience, which is why insurers look at recoveries as well as payments.

A driver basis where anyone driving with the policyholder's permission is covered, within the age and licence conditions in the policy. It gives flexibility, and insurers tend to look closely at how the business vets its drivers before offering it.

The licence a business needs to run goods vehicles above a set weight, or certain passenger vehicles, for business. Insurers often ask whether one is held and whether there have been any issues with it, especially for HGV fleet insurance.

Damage to the policyholder's own vehicle, as opposed to damage caused to third parties. It is included on comprehensive policies but not on third party only or third party, fire and theft.

The part of the policy documents that lists the specific details: policyholder, period of cover, vehicles, drivers, excesses and endorsements. It is read alongside the general policy wording, and the schedule takes priority where it adds conditions.

The person or business named on the policy, who holds the contract with the insurer and is responsible for paying the premium and giving accurate information.

The price paid for the insurance, usually including insurance premium tax. For fleets it depends on the vehicles, drivers, use, claims experience and the insurer's view of the risk.

A way of charging or refunding premium in proportion to the time left on the policy. It is common for mid-term adjustments, though some insurers apply minimum charges or short-period rates instead.

The point at which a policy period ends and new terms are offered. Fleet renewals usually need updated vehicle and driver lists plus recent claims experience, and a fleet insurance renewal planner helps line those up in time.

The amount an insurer sets aside for a claim that is still open, based on what it expects to pay. Reserves count towards the fleet's claims cost until the claim settles, so a large reserve can affect a renewal even before money is paid.

Renting vehicles to customers who drive them themselves. It needs specialist cover because standard fleet policies do not cover vehicles hired out to the public, as explained in our guide to self-drive hire fleet insurance.

The class of use for personal journeys, such as shopping, visiting friends or days out. On a fleet policy it matters when staff take vehicles home or are allowed private use.

A document setting out the information the insurer relied on when offering cover, such as the business activity, vehicles and claims history. Errors in it can affect claims, so each entry is worth checking when it arrives.

The insurer's right, after paying a claim, to pursue the responsible party to recover what it has paid. It is how a non-fault claim turns into a recovery on the claims record.

Devices or apps that record vehicle location, speed, braking and other driving data. Some insurers take it into account, and many fleets use it to manage driver behaviour and theft risk, a topic the fleet risk health check covers.

Anyone other than the policyholder and the insurer who is affected by an incident, such as another driver, a pedestrian, a passenger or the owner of damaged property.

The minimum level of motor cover available in the UK. It covers injury to other people and damage to their property, but not damage to or theft of the insured vehicle.

Third party cover plus protection if the insured vehicle is damaged by fire or stolen. It does not cover accidental damage to the insured vehicle itself.

A policy condition setting out what has to happen when a vehicle is left, such as locking it, closing the windows and removing the keys. Some policies add rules about leaving tools or goods inside overnight.

The person at the insurer who assesses the risk, decides whether to offer cover and sets the terms and premium. For fleets, underwriters often review the claims experience and driver details individually.

A list of every vehicle on the fleet with registration, make, model, value and use. Insurers use it to quote and to keep the policy accurate, and a vehicle schedule builder makes one quick to put together.

An extra amount the policyholder chooses to pay on each claim, on top of the compulsory excess. It can lower the premium but raises the cost of every claim to the business.

Cover for repairing or replacing broken vehicle glass, often with its own lower excess. On many policies a windscreen claim is treated differently from other claims, depending on the insurer.

A vehicle the insurer decides is too damaged to repair economically, or not safe to repair. The insurer normally pays its market or agreed value and takes ownership of the salvage.