At Zego, we create insurance products that fit the way you work, with everything from hourly to annual policies available.
Creating insurance means dealing with our fair-share of jargon, and whilst the policy details are important, we recognise that sometimes they can be hard to understand.
We believe your insurance should be as simple as possible, and that includes understanding every aspect of your policy. That’s why we’ve decided to share some of our knowledge with you by breaking down some insurance terms.
Here’s our handy guide to insurance jargon.
Auto-enrollment
Auto-enrollment is the system by which Zego receives hours automatically from our partnered work providers. They let us know when our customers are on shift, which means that we can make sure that we provide our customers with cover just for the time in which they need it.
Certificate of insurance
Your certificate is important. It’s proof that you or your vehicle is insured and that your insurance is valid for the length of your policy. We store your certificate of insurance securely in the Zego app, meaning it’s only ever a couple of taps away should you need it.
Claim
An Insurance claim is an application for compensation under the terms of an insurance policy.
Excess
Your excess is the amount of money that you will have to contribute towards the cost of any claim which you make on your policy. For example, if you make a claim for £900 and your excess is £400, you will pay the first £400 of the cost and your insurance company will cover the remaining £500.
FCA
The FCA (Financial Conduct Authority) are responsible for regulating financial firms providing services to consumers and maintaining the integrity of the financial markets in the United Kingdom. Zego is a trading name of Extracover Limited, which is authorised and regulated by the Financial Conduct Authority (FRN: 757871).
Fully Comprehensive
Fully Comprehensive insurance provides you with the highest level of cover for both yourself and your vehicle. Unlike Third Party insurance, you will also be covered for any damage to either you or your vehicle in the event of an accident, even where you are found to be at fault.
Hire & Reward
Hire & Reward is the type of cover that you need in order to carry food, parcels or passengers in return for money. It runs as an additional insurance on top of your underlying Social, Domestic & Pleasure cover, which you are required by law to have in place. If you are working as a courier, food delivery or private hire driver, you are required by law to have Hire & Reward insurance in place to cover you for the duration of your shift.
Insurance vs. Cover
These mean the same thing and are used interchangeably. For example ‘your insurance policy is valid for 12 months and you have cover in place for private hire and delivery work’.
Letter of enrollment (LOE)
Your letter of enrollment is the proof you have an insurance agreement in place with Zego which enables us to cover you whilst you’re working. Your work provider may request to see your letter of enrollment which you can access quickly and easily via the Zego app.
License type
Different license types allow you to drive particular vehicles. You can find out which vehicles your license allows you to drive here. You must always make sure that you have the entitlement for the relevant category to drive a particular type of vehicle first.
Limit of indemnity
The limit of indemnity refers to the maximum amount paid out for one claim. With Zego’s public liability insurance, the indemnity limit is £1 million. That means you’re covered for legal costs and compensation claims up to a maximum of £1 million should a claim be made against you.
Modifications
Modifications are defined as any changes or alterations that you have made to your vehicle. You may accidentally invalidate your insurance policy by making changes to your vehicle so it’s always worth checking your policy. You must always inform your insurance company about any changes you make to your vehicle.
Named driver
A named driver is somebody who is insured to drive a vehicle where another person does the majority of the driving.
No Claims Discount/Bonus (NBC/NCD)
No Claims Discount is a discount that a driver earns for going a full policy term without making a claim. Each successive claim-free year gives you another year of NCD.
Owner (Legal owner)
If you’ve bought a vehicle, or were given it as a gift, you are the legal owner of the vehicle in question.
Pay-as-you-go insurance
At Zego we build our products to suit the way you work — that’s why we created pay-as-you-go insurance options. Unlike traditional insurance, where you pay for an annual policy, pay-as-you-go insurance works by the hour. We designed so our customers stop paying for insurance they don’t need — after all, why pay for the year when you work by the hour?
Pillion
A pillion is the seat on a motorbike behind the driver. A passenger in this seat is said to ride pillion. It is always important to check your insurance policy to find out whether you are covered to ride with a pillion passenger.
Policy
A policy, otherwise known as an Insurance Policy is a document detailing the terms and conditions of a contract of insurance.
Policyholder
A policyholder is the person to which the insurance policy is issued. If, for example, you take out pay-as-you-go scooter insurance with Zego, you will be referred to as the policy holder. The policyholder is responsible for paying for their insurance and they will also receive the benefits of the policy cover in the case of a claim.
Premium
Your insurance premium is the amount of money that you have to pay for your insurance policy. The price of your insurance premium depends on a number of factors, which is why different people will receive different quotes for their insurance.
Public liability
Public liability insurance covers you for the cost of a claim made by a member of the public that has suffered injury or property damage as a result of your business or a product it has supplied. It protects you against the cost of compensation to be paid out and any legal expenses incurred by the claims process.
Quote
The price an insurer offers for insurance cover based on the information provided by the customer.
Registered keeper
The registered keeper is the person whose name appears on the V5C or vehicle logbook. This is the person who is using the vehicle, but it does not necessarily have to be the person who owns or bought the vehicle. You can update the registered keeper of a vehicle by visiting the following link: https://www.gov.uk/sold-bought-vehicle
Renewal
Extending the length of an initial insurance policy beyond its initial terms. For example, if you have a 12-month policy and want to stay with the same insurance company, your insurance policy is renewed.
Road Traffic Act
The Road Traffic Act governs all car insurance in the UK. It first came into force in 1930 to make sure innocent victims of accidents weren’t left out of pocket. It later updated in 1972 to include passengers and again in 1988 to cover third-party property.
Social Domestic & Pleasure (SD&P)
If you have Social, Domestic and Pleasure insurance in place, you’re covered for when you drive your vehicle for your own personal use. Everything from going to the shops to picking up family and friends is covered under SD&P, but it does not insure you if you’re picking up passengers or carrying goods as part of your job (see Hire & Reward).
The Motor Insurance Database (MID)
The MID is the database of all insured vehicles in the UK. It is managed by the Motor Insurance Bureau (MIB) and is used by the Police and the Driver and Vehicle Licensing Agency (DVLA) to check whether vehicles are insured. You can check if your vehicle is insured here.
Third Party, Fire & Theft
Third Party, Fire & Theft insurance will cover you for the same things as Third Party Only cover, but also included cover for your vehicle if it is stolen or damaged by fire. However, any damage done to you or your vehicle as a result of an accident where you are found at fault will not be covered.
Third Party Only (TPO)
Third Party Only insurance covers any damage you may do to another person, their property or their vehicle should there be an accident that is your fault. If you are involved in an accident, TPO insurance would cover the cost of the other person’s vehicle as well as their medical expenses. It doesn’t cover damage to your own car, or any injuries you may suffer.
We’re here to help
Remember, our friendly customer service team are on hand seven days a week if you need help. It doesn’t matter whether you have a question about your account, or you’d just like some more information about our products — whatever your question, we’ll be more than happy to answer it.