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.


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.


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.


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). 


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


The necessary and unavoidable cancellation of your trip. 


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.


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.


You and your close relative who lives with you in a domestic relationship at the same address as you for at least six months at the time of purchasing your policy.


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.


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.


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


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.


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.


Your usual place of residence in the UK (England, Scotland, Wales, Northern Ireland, the Isle of Man and the Channel Islands) as a UK resident.


Sickness, infirmity or disease.


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.


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


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.


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.


The amount you pay for the insurance.


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.


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 Disruption Cover for disruption to your trip, affecting your journey before you reach your destination, or while you're at your destination, or on the way home.

Travel Documents

Policyholders travel documents such as passport and visas.


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 is permanently resident in the United Kingdom and is registered with a medical practitioner also in the United Kingdom.


Items such as jewellery, gold, silver, precious metal or precious or semiprecious stone articles, watches, furs, CD's, DVD's, tapes, films, cassettes, cartridges, computer games, telescopes and binoculars.

Winter sports

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