Travel Insurance - Glossary of Terms

Below is a summary of terms relevant to your RAC Travel Insurance policy. For full, expanded explanations please check your Policy Wording.

Accident

A sudden identifiable violent external event that happens by chance and which could not be expected; or unavoidable exposure to severe weather conditions.

Adverse weather

Severe weather conditions, like fog, a hailstorm or severe rainstorm, a blizzard, or an ice storm.

Amendment

A change to your original policy.

Annual premium

The amount paid by the policy holder on an annual basis to cover the cost of the insurance policy.

Area of Travel

The travel limitations of your policy, such as European or worldwide.

Baggage

Personal property you take on your trip including the suitcases/bags you use to carry them. (excluding valuables, ski equipment, golf equipment gadgets, personal money and documents of any kind). 

Benefits

The amount that an insurance provider may pay you in respect of a claim.

Business Equipment

Items used by you in support of your business activities, such as personal computers and telephones

Business Trip

A trip taken wholly in part for business purposes but excluding manual work

Cancellation

Ending your insurance policy. You might be charged if you cancel before your policy is due to end. Your policy documentation will have details of these charges.

Catastrophe

Natural catastrophe such as a fire, flood, storm or earthquake.

Change in Circumstances

If your insurance needs or any of the information you have given the insurer changes then this change in circumstances may affect your insurance cover, even if you do not think a change is significant. The insurer may need to change your policy.

Claim

Single loss or a series of losses due to one cause covered by this Policy.

Close Relative

Mother, father, sister, brother, wife, husband, civil partner, daughter, son, grandparent, grandchild, parent-in-law, son-in-law, daughter-in-law, sister-in-law, brother-in-law, step parent, step child, step sister, step brother, foster child, legal guardian, domestic partner or fiancé/fiancée.

Couple

You and your close relative who lives with you in a domestic relationship at the same address as you.

Curtailment

Cutting your holiday short.

Curtailment Costs

Unused accommodation costs and reasonable additional travel and accommodation costs to return home to the UK if you have to cut your holiday short due to specific covered events such as death or serious injury of you or a travelling companion or an immediate family member.

Damage

Physical harm that impairs the value, usefulness, or normal function of something:

Date of Issue

The date your policy was purchased.

Emergency Repatriation

Emergency transport to the UK if it is medically necessary to return you to your home or a hospital in the UK and an accompanying travelling companion or medical personnel where necessary.

Excess

The first amount stated in the policy schedule of any claim which each person insured must pay.

Exclusions

Any risks or types of loss or damage which we will not pay out for. These exclusions will be clearly set out in your policy terms and conditions.

Extra Cover Options

Additional policy benefits which can be purchased to increase the cover provided by your policy.

Financial Conduct Authority

The UK's financial watchdog. The FCA regulates financial services companies, including insurance companies.

Gadgets

Includes items such as Mobile Phones, Smart Phones, Laptops, DVD players, Video Cameras, Satellite Navigation Devices, PDA’s, E-Readers

Golf Equipment

Golf clubs, golf balls, golf bag, golf trolley and golf shoes.

Holiday begins

The date stated on your policy schedule in relation to the holiday(s) covered by this policy.

Home

Your usual place of residence in the UK (England, Scotland, Wales or Northern Ireland) as a UK resident.

Illness

Sickness, infirmity or disease.

Injury

Damage done or harm to or suffered by a person.

Insurance Premium Tax

A government tax which is included in the price of your insurance.

Insurance Risk

This is the method by which insurance underwriters decide how likely you are to make a claim and how costly this claim is likely to be. This enables the underwriters to calculate what premium you should pay.

Insurer

A person or company that insures something or someone against loss or damage.

Journey

A trip that takes place during the period of insurance.

Level of Cover

The amount covered under each section of the policy.

Medical Condition

Any disease, illness or injury.

Medical Expenses

Medically necessary expenses incurred as a result of injury or illness.

Missed Departure

If you arrive too late at your final point of international departure from the United Kingdom on your outbound journey or to the United Kingdom on your return journey to board the public transport on which you are booked to travel from or to the United Kingdom.

Money

Coins, banknotes, traveller’s cheques, postal or money orders, travel tickets, pre-paid vouchers, non-refundable pre-paid entry tickets and debit, credit, payment, pre-payment and/or charge cards.

Mugging

A violent, threatening attack by a third party causing actual bodily harm.

Period of insurance

The period of time covered by the policy as shown in the policy schedule.

Personal Liability

Covers sums which you are legally liable to pay as damages to third parties in respect of accidental bodily injury to any person or accidental loss of or damage to material property.

Personal Money

Bank notes, currency notes and coins in current use, travellers’ and other cheques, postal or money orders, pre-paid coupons or vouchers, travel tickets, event and entertainment tickets, phone cards, money cards and credit/debit or pre-pay charge cards all held for private purposes.       

Person(s) Insured

You, and your partner and children if they are shown as insured on the policy schedule.

Policy Document

Document which outlines what is and is not covered and conditions of cover.

Premium

The amount you pay for the insurance.

Quarantine

Mandatory isolation or restrictions on where you can go on the orders of a treating doctor.

Quote / Quotation

The premium and terms offered by a potential insurance company to provide the cover you request.

Schedule

The document which identifies the person(s) insured and sets out details of the cover the policy provides.

Single Item

Any one article.

Ski Equipment

Skis (including bindings), ski boots, ski poles and snowboards

Travel Delay 

The delay of first outward and/or final inbound flight, rail or sea trip from or to the UK.

Travel Documents

Policyholders travel documents such as passport and visas.

Trip

Any holiday, pleasure trip or journey made by you within the area of travel shown in the schedule, during the period of insurance

UK Resident

Someone who has been living in England, Scotland, Wales, or Northern Ireland for at least three months prior to the date cover is applied for and continues to live here throughout the period of insurance.

Valuables

Items such as photographic equipment, jewellery, mobile phones, computers (including tablets, PDAs, notebooks, laptops and computer games), audio and video equipment (including MP3 and MP4 players) etc.

Winter sports

Sporting activities which take place predominantly during winter such as skiing, snowboarding and tobogganing. Cover is not automatically included in your policy.