Car insurance glossary

Make sure you know what your car insurance policy says

Here are some phrases you might come across in your research into car insurance policies.

The phrases and definitions are illustrative only and do not indicate actual wording in Australia Post products. Please carefully consult the Product Disclosure Statement of the individual polices of any product you decide to take up.

Accident or accidental

An unexpected, unforeseeable event causing loss that can happen while you're driving covered by your policy.

Agreed Value

The amount you and your insurance provider agree to insure your vehicle for, during each term of insurance. The Insurance Certificate shows the amount (if applicable) and it may change each time you renew the policy.


The person who receives compensation from your insurance policy in the event of your death.


What your insurance provider gives you according to the terms of your policy.


The vehicle specified in this policy including the manufacturer's standard accessories forming part of the vehicle and any other accessories that your insurance provider has agreed to cover.


A request for payment in accordance with your insurance policy.


Covers your liability for damage caused by the car to other people's property, plus cover for the car up to the value you insure it for.

Cooling-off period

A set period of time after date of insurance policy purchase in order to receive a full refund of what you have paid.

Cover or coverage

This is the extent of protection afforded by your policy.


Harm or injury to property or a person, resulting in loss of value or the impairment of usefulness.


If you have an excess on your policy, this is an amount you have to first pay towards a claim.

Excess waived

You do not have to pay any excess if the car is involved in a no fault accident with another vehicle and the amount of your claim is more than the basic excess.

Existing Medical Condition

Conditions where you've received treatment by a medical practitioner within the past 90 days, are under investigation for, on a treatment waiting list, or have changed medications in the last 60 days.

Household Member

A person who normally resides with the regular driver.


An injury is anything which harms you that occurs by accidental or violent means that is covered by your policy.

Market Value

The reasonable cost to replace your vehicle with one of the same make, model, age and condition as your vehicle at the time of the loss or damage. It does not include any allowance for warranty, stamp duty, transfer costs or dealer profit.


Any alteration to your vehicle's standard engine, exhaust system, body, suspension, wheels or paintwork.

New Car Replacement

Replacing a damaged car with a new one of the same make, model and specification if available locally. This happens if the car is purchased as new and it becomes a total loss within a specific period of time.

No Fault Accident

An accident where your insurance provider decides the driver of another vehicle was entirely at fault, and you provide their full name, residential address and vehicle registration number.

Regular Driver

The person who drives the car most frequently. This person is shown on the Insurance Certificate.

Substitute Car

A vehicle you have hired or borrowed because the car is being repaired, serviced or has had a mechanical breakdown, and is of a similar type as the insured car.

Third Party Property

Covers only your liability for damage caused by the car to other people's property, plus a limited amount of cover for the car if damaged in a no fault accident with an uninsured vehicle.

Third Party Fire and Theft

Covers the same as "Third Party Property" above, plus loss or damage to the car only if it is stolen or catches fire. It does not cover damage caused by attempted theft of the car or items being stolen from the car.

Total loss

If vehicle is stolen and not recovered or repairs for damage are considered to not be economical.

* This online discount offer only applies to the premium paid for a new Gold Comprehensive car insurance policy initiated on or after 26 March 2015, and purchased online. The discount is taken from the premium that you would pay for a Gold Comprehensive motor vehicle insurance policy when a quote is obtained over the phone. Base rate premiums are subject to change. It does not apply to any renewal offer of insurance or fees (as outlined in the Financial Services Guide (FSG) (316kb)). You will be responsible for all applicable GST and other statutory charges. We reserve the right to shorten or extend the period the discount is offered and vary the amount of the discount.

Australian Postal Corporation ABN 28 864 970 579 (AR No. 338646) "APC" is the distributor of Australia Post Comprehensive Car Insurance and acts as an Authorised Representative of Australia Post Services Pty Ltd ABN 67 002 599 340 (AFSL No. 457551) "APS". Because APC or APS don't know your financial needs, we can't advise if this insurance will suit you. You should consider your needs and read the FSG and Product Disclosure Statement (PDS) before making a decision to buy this insurance. Auto and General Services ABN 61 003 617 909 (AFSL 241411) "AGS" arranges the insurance on behalf of Auto & General Insurance Company Ltd ABN 42 111 5 86 353 (AFSL No. 285 571) "AGIC", the issuer of the policy. AGS pays APC a commission which is a percentage of your premium. Neither APC nor APS accept liability or guarantee payment of any claim or benefit in respect of the AGIC's products.

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