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.
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.
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.
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.
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.
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.
The person who drives the car most frequently. This person is shown on the Insurance Certificate.
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.
If vehicle is stolen and not recovered or repairs for damage are considered to not be economical.