Vehicle insurance around university city (9)
I believe the answer is:
vancouver
'city' is the definition.
(I know that Vancouver is a city)
'vehicle insurance around university' is the wordplay.
'vehicle' becomes 'van' (van is a kind of vehicle).
'insurance' becomes 'cover' (I've seen this before).
'around' is an insertion indicator.
'university' becomes 'u' (abbreviation for university).
'cover' placed around 'u' is 'couver'.
'van'+'couver'='VANCOUVER'
(Other definitions for vancouver that I've seen before include "part of Canada" , "Canadian city" , "English navigator?" , "Canada's chief port" , "Canadian Pacific port" .)