Car Insurance Terminology

With so many terms and definitions to get your head around, car insurance can be confusing. So we've put together this guide to help make things a little easier for you to understand.

Car Insurance Terms & Definitions

Accessories 

Extra items added to the car before it was delivered new to its first owner, as well as items added to the car by anyone at any time after it was delivered new to its first owner. For more information, refer to the Accessories and Modifications section.

Accident / accidental / accidentally 

An unforeseen, unintended, and unexpected event which occurs suddenly and at a specific place and time.

 

Agreed value

The amount we agree to insure the car for at the time of loss, which is shown on your policy schedule. The agreed value includes any accessories and modifications fitted or made to the car, unless they are disability or campervan/motorhome modifications.

Baby seat/s 

A child restraint that complies with the Australian/New Zealand Standard for Child Restraint Systems for Use in Motor Vehicles, as amended from time to time.

Breakdown / breaks down 

A mechanical or electrical fault which has caused the vehicle to become immobilised and/or unsafe to drive. Breakdown also includes a flat tyre, flat or faulty battery, a vehicle which has run out of fuel, or keys that are lost or locked inside the vehicle.

Business items/s 

The equipment, instruments and tools you use in your trade or profession that either belong to you or you are responsible for.

Business use 

A car that is used as an essential part of any work or business, or that is used to generate income or reward.

Call out/s 

Where a service provider is dispatched to provide assistance at the breakdown location.

Car 

The motorised vehicle (including campervan or motorhome) shown on your policy schedule, and any factory fitted accessories. This also includes after market accessories and/or modifications where an amount for accessories and/or modifications is noted on the policy schedule.

Comprehensive cover

The car on the policy schedule is covered for the events listed under Insured Events. It includes additional cover listed under Extra Cover where that extra cover is specified as applying to Comprehensive cover.

Contract period 

The period, including the time and date, from the start or renewal of your policy to its expiry, as noted on your policy schedule.

Driver/s

The person using or operating a car, or the person legally responsible for the use or operation of a car.

Earthquake 

An earthquake, volcanic eruption, hydrothermal activity, or tsunami.

Excess/es 

The first amount you must pay in relation to each and every claim made under your policy.

Flood / flooding 

The covering of normally dry land by water that has escaped or been released from the normal confines of any of the following:

(a) a lake (whether or not it has been altered or modified);

(b) a river (whether or not it has been altered or modified);

(c) a creek (whether or not it has been altered or modified);

(d) another watercourse (whether or not it has been altered or modified);

(e) a reservoir;

(f) a canal; or

(g) a dam.

Gross Trailer Mass 

The mass transmitted to the ground by the axle or axles of the trailer when coupled to a drawing vehicle and carrying its maximum load approximately uniformly distributed over the load bearing area.

Household member/s 

Any person who lives at the overnight address where the car is kept and which is noted on your policy schedule.

Incident/s 

An unforeseen, unintended, and unexpected event which occurs suddenly and at a specific place and time.

Immobile / immobilised 

Not capable of moving using the car’s own power.

Insured event/s 

An event that is described in the Insured Events section in this PDS.

Insured property 

The car and any other property that is insured by this policy.

Insured value/s 

Either the market value or agreed value as shown on your policy schedule.

Leaves / leaving the scene of an accident without lawful excuse 

Not remaining at an accident scene where required by law to remain until the duties at that location are complete or there is a valid reason for leaving. These duties may vary according to state or territory laws; for example:

  • obtaining details of all parties involved;

  • checking if any person is injured;

  • checking if damage has occurred to private or public property; and

  • contacting the police.

Relevant regional requirements should be checked at either a state or territory government department, motor registry, or through the police.

Listed driver/s 

Any driver listed on your policy schedule and who is legally allowed to drive the car. The regular driver is also a listed driver.

Market value 

The reasonable and expected cost of replacing the car with a car of the same or a similar make, model, mileage, and condition, immediately before an incident covered by your policy. Market value includes any factory fitted accessories. Market value does not include any warranty costs, future stamp duty, transfer fees, or allowance for dealer profit.

Metropolitan 

The capital city of each state or territory, including the following surrounding towns and cities: in QLD this includes all suburbs of the Sunshine Coast and Gold Coast; in VIC all suburbs of Geelong; in NSW Newcastle, Central Coast and Wollongong; and in WA all suburbs of Rockingham and Armadale.

Mobile / mobilised 

Moving or capable of moving using the car’s own power.

Modifications 

All changes from the manufacturer’s specifications, made to the car at any time after it left the factory where it was built. For more information, refer to the Accessories and Modifications section.

Policy 

This PDS, your most recent policy schedule, and your application for insurance.

Policy schedule

The document we give you that confirms we have issued you insurance cover and includes details of that cover.

Private use 

A car that is used solely for social, domestic and pleasure purposes, including driving to or from your or a listed driver’s regular place of work or study.

Reckless manner 

Any intentional and dangerous act by the driver of a car; for example, excessive speeding, failing to stop at a red light or stop sign, or texting while driving.

Regional 

All incidents occurring outside of those areas defined above as metropolitan.

Registered 

The car or trailer is registered or licensed in an Australian state or territory for use on a public road.

Regular driver 

The person who drives the car most of the time or more than anyone else.

Restricted access area 

An area that is protected by security and/or systems designed to prevent access by unauthorised people; including airports, security-controlled zones and community events.

Roadworthy 

That a car or trailer complies with the roadworthy requirements for the Australian state or territory where it is being used.

Service area 

An area in mainland Australia, Tasmania, and Phillip Island that is accessible by a two-wheel drive recovery vehicle, or an island that is accessible by a two-wheel drive via road or bridge (excludes ferries).

Storm 

A violent atmospheric event which includes a thunderstorm, cyclone, or strong wind with or without rain, hail or snow, but not rain showers alone.

Substitute car 

A loan car of similar type, and used for similar purposes, that is provided free of charge by the service provider whilst the car is out of order due to it being serviced or repaired. A hired or rented car is not a substitute car.

Third party 

Any person involved in an accident with the car, excluding the driver or passengers of the car.

Third Party Property Only cover 

The car on the policy schedule is covered for damage caused to other vehicles and property, as defined under Extra Cover: Legal Liability. It excludes damage caused to the car insured on this policy, other than what is described under Extra Cover: Uninsured Third Party. It includes additional cover listed under Extra Cover where that extra cover is specified as applying to Third Party Property Only cover.

Third Party, Fire and Theft cover 

Third Party Property Only cover plus cover for the insured events of Fire, Theft, and Earthquake. It includes additional cover listed under Extra Cover where that extra cover is specified as applying to Third Party, Fire and Theft cover.

Total loss 

When the car is either stolen and not recovered, or it is damaged to the extent it is not economical or safe to repair; for example, where the combined repair costs and salvage value are likely to be more than the insured value or any other value we are required to use by law, or where the car is a statutory write off as required by law.

Unbraked trailer 

A trailer up to and including 750kg Gross Trailer Mass.

Unregistered 

A car or trailer is not registered nor licensed in an Australian state or territory for use on a public road.

Use / used / using 

Private use or business use, as defined above.