Fleet insurance glossary
The words you’ll meet in fleet quotes, schedules and policy wordings, explained without the jargon.
A
- Age restriction
- A condition limiting cover to drivers above (and sometimes below) a set age. Fleet policies may apply different age limits to different vehicle types, for example a higher minimum age for heavier vehicles.
- Any-driver cover
- A driving clause that lets anyone the policyholder permits drive the insured vehicles, usually subject to conditions such as a minimum age or a clean licence. It avoids naming every driver but is generally priced to reflect the wider group of people who could drive. How fleet driving clauses work
B
- Business use also: Class 1, 2 and 3 business use
- A class of use covering driving in connection with a business beyond commuting, such as travelling between sites or visiting customers. Policies usually define several business use classes, so the right one depends on who drives and for what purpose.
C
- Carriage of own goods
- Use of a goods vehicle to carry your own tools, materials or products as part of your business, rather than other people’s goods for payment. Typical for trades and construction firms. Van fleet insurance
- Certificate of motor insurance
- The document proving a vehicle has the insurance required by law. On a fleet policy it commonly describes the vehicles covered and who may drive them, rather than listing a single car and driver.
- Claims experience also: Claims history, Claims experience letter
- A record of claims made under a policy over a period, usually provided by the current insurer or broker. Fleet insurers use it to judge how the fleet has performed, so having it ready speeds up quotes at renewal. Renewal checklist
- Class of use
- The purposes a vehicle is insured for, such as social, domestic and pleasure, commuting, business use, carriage of own goods or hire and reward. Using a vehicle for a purpose not covered can leave a claim unpaid.
- Comprehensive cover
- The widest standard level of motor cover: third-party liability plus fire, theft and accidental damage to your own vehicles, subject to the policy terms and excess.
- Continuous Insurance Enforcement (CIE)
- The rule that a vehicle registered in the UK must be insured unless it has been declared off the road with a Statutory Off Road Notification (SORN). It applies whether or not the vehicle is being driven.
- Courtesy vehicle
- A replacement vehicle provided while an insured vehicle is repaired after a claim, often only when an approved repairer is used. Availability for vans and larger vehicles varies between policies.
D
- Driving other vehicles (DOC)
- An extension allowing a named person to drive vehicles not listed on the policy, usually with third-party cover only. Many business and fleet policies restrict or exclude it, so it should never be assumed.
E
- Endorsement
- A change or addition to the policy wording that alters the cover, such as an extra exclusion or condition. Endorsements are listed on the schedule and are worth reading at every renewal.
- European use
- Cover for driving insured vehicles outside the UK, often for a limited number of days per trip. Some goods vehicles also need extra documents to operate abroad.
- Excess
- The amount the policyholder pays towards a claim. Fleet policies may have different excesses for accidental damage, theft, windscreen claims and young or inexperienced drivers, and some businesses choose a higher voluntary excess.
F
- Fair presentation of the risk
- The duty on business customers to disclose material information to insurers before cover starts and at renewal, under the Insurance Act 2015. In practice it means telling the broker about anything that could affect the insurer’s decision.
- Fleet policy also: Motor fleet insurance
- A single motor insurance policy covering a group of business vehicles under one schedule and renewal date, often with flexible driving clauses and the ability to add or remove vehicles during the year. Fleet insurance explained
- Fleet schedule also: Vehicle schedule
- The list of vehicles on a fleet policy with details such as registration, make, model, value and use. Keeping it accurate matters for claims and for the Motor Insurance Database. Build a fleet schedule
G
- Goods in transit
- Separate cover for goods being carried, such as customers’ parcels or your own stock, against loss or damage in transit. It is not part of a standard motor policy. Courier fleet insurance
- Grey fleet
- Privately owned vehicles that employees use for work journeys. The employee’s own policy normally needs the right business use, and the employer still has health and safety responsibilities for work-related driving. Grey fleet guide
- Gross vehicle weight (GVW) also: Maximum authorised mass, MAM
- The maximum a vehicle is designed to weigh when fully loaded. It decides which licence category is needed and whether the vehicle is treated as a van or a heavy goods vehicle.
H
- HGV
- A heavy goods vehicle, generally a goods vehicle over 3.5 tonnes gross vehicle weight. Operating HGVs commercially usually requires an operator’s licence as well as insurance. HGV fleet insurance
- Hire and reward
- Use of a vehicle to carry other people’s goods or passengers for payment, as couriers, hauliers and taxi operators do. It is a separate class of use and is not included in ordinary business use.
L
- Legal expenses cover
- Optional cover for legal costs, such as recovering uninsured losses after an accident that was not your driver’s fault, or defending certain motoring prosecutions.
M
- Mid-term adjustment (MTA)
- A change made to a policy during its term, such as adding a vehicle, removing one or changing a driver. Fleet policies are designed to handle regular adjustments, which may lead to extra premium or a refund.
- Mini fleet
- A term for a small fleet policy, typically used for businesses with a handful of vehicles. The number of vehicles that qualifies is set by each insurer. How many vehicles you need
- Motor Insurance Database (MID)
- The central record of insured vehicles in the UK, used by the police and others to check insurance. Fleet vehicles must be recorded accurately, and changes need to be notified promptly. The MID for fleet operators
- Multi-vehicle policy
- A policy or discount arrangement that insures several vehicles for one policyholder, often with separate cover details for each vehicle. It sits between individual policies and a full fleet policy. Multi-vehicle insurance
N
- Named driver
- A person listed on the policy as permitted to drive. Named-driver fleet policies give the insurer detail about each driver, which can suit fleets with a stable team.
- No claims discount (NCD)
- A discount for years without claims. On fleet policies, insurers usually look at the fleet’s overall claims experience rather than an individual no claims discount for each vehicle.
O
- Operator’s licence (O-licence)
- A licence from the Traffic Commissioner needed by most businesses using goods vehicles over 3.5 tonnes for business. It is separate from insurance but insurers may ask about it.
P
- Policy schedule
- The part of the policy documents setting out the specific details of your cover: the insured, period, vehicles or fleet description, driving clause, excesses and endorsements.
- Private hire
- Pre-booked passenger transport licensed by the local authority. Private hire vehicles need insurance that covers private hire use, which is different from public hire. Taxi fleet insurance
- Public hire
- Taxis licensed to be hailed in the street or use taxi ranks, such as hackney carriages. Public hire use must be specifically covered.
S
T
- Telematics
- Technology that records how, when and where vehicles are driven, such as trackers and connected dashcams. Some insurers use telematics data when assessing a fleet, and it can help with claims and driver training. Telematics and fleet insurance
- Third party only (TPO)
- The minimum cover required by law, covering liability for injury to other people and damage to their property, but not damage to your own vehicles.
- Third party, fire and theft (TPFT)
- Third-party liability cover plus cover if your own vehicle is damaged by fire or stolen, but not accidental damage.
- Tools in vehicle cover
- Optional cover for tools and equipment kept in vans, which a standard motor policy usually excludes or limits. Conditions often require vehicles to be locked and tools removed overnight.
U
- Unaccompanied vehicle
- A term sometimes used in theft conditions. Policies may require keys to be removed and vehicles locked when left, and theft claims can be refused if those conditions are broken.
W
- Windscreen cover
- Cover for repairing or replacing glass, often with a separate, lower excess and no effect on the fleet’s claims record when an approved supplier is used.
Definitions describe how terms are commonly used in the UK market. Your own policy wording decides what is covered.
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