Please use our insurance glossary to clarify the meaning of any terminology used in the insurance industry. As a young driver or first time driver, the terminology used in insurance contracts can be confusing. We have created a glossary of terms of particular interest to younger motorists to help clarify any of the difficult insurance language you might come across.

Whilst this glossary has been put together by people with many years of insurance expertise, it should only be used as a guide. For the ABI glossary visit their website.

Use the letters below to shortcut to relevant areas on this glossary.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

E

Endorsement
This is a written amendment to an insurance policy that becomes a legal part of the insurance documentation.

Excess
This is an amount of money that the policyholder has to pay towards the cost of a claim. There is normally a combination of compulsory and voluntary excesses. More information is available on young driver excess in our FAQs .

Excess of Loss Policy
This is a special excess policy which covers claims costs exceeding an amount specified in the policy.

Exclusion
This is a specified property, person or event that the insurance policy does not cover. Market Exclusions are exclusions that the insurance market finds uninsurable.

Ex Gratia Payment
Any payment made by an insurance company that is not strictly necessary, under the terms of the policy. Often these payments are good will gestures to rectify poor service.

Exposure
Whether, and the extent to which, an insurer is subject to losses arising from a particular risk.

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