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Car Insurance Glossary - Car Insurance Explained

Amount Covered

This amount covered is the maximum amount the insurer will pay for loss or damage to your car caused by an incident less any deductions that apply, unless the insurer says otherwise in your policy. It includes the value of any accessories or modifications and includes GST.

For comprehensive cover, your amount covered will be shown on your certificate of insurance. For fire, theft and third party property damage cover, your amount covered will be the market value of your car or the limit shown on your certificate of insurance, whichever is less.  

Authorised repairs 

This is when the insurer has an arrangement with a repairer to conduct the repairs to your car.

Car

Your car is described on your certificate of insurance and includes the standard manufacturer's options and any options, accessories and modifications that have been fitted to your car. 

Certificate of insurance 

Certificate of insurance includes the insurance account, which the insurer has provided. It is an important document showing the covers you have chosen and policy details. 

Excess 

Excess is the amount you pay for each incident when you make a claim. For example, if the rear and front of your car have been damaged in two separate incidents, then you have to make two claims and pay the excess that apply for each claim. The total excess you are required to pay is determined by the circumstances of your claim. You might have to pay more than one type of excess when you claim. 

Incident or event 

This refers to a single occurrence you did not intend or expect to occur. 

Limit

This is the most you can claim for any one incident and includes GST.

Listed driver

A listed person is the person or people shown on your certificate of insurance as "listed drivers'. 

Market Value

Market value is the reasonable cost to replace your vehicle with one of the same make, model, age and condition at the time it is stolen or damaged. It doesn't include any allowance for warranty, stamp duty, transfer costs or dealer profit. 

Original equipment parts 

This refers to parts manufactured anywhere in the world by, on behalf of, under licence from or with the consent (whether direct or indirect) of:

a) The manufacturer or supplier of your car. 
b) The manufacturer or supplier of the part originally supplied with your car at the time of the car's purchase. 
c) Any member of the domestic or international corporate group of which the manufacturer or supplier of your car or the manufacturer or supplier of the part is a member or affiliated with (including affiliation by common use of trademarks).
d) Any affiliate, licensee, sub-licensee, related body corporate or affiliate of any entity in a) or b) or c) of this definition whether or not the parts or the packaging of the parts bears the trade mark or trade marks of any of the entities contemplated by a), b), c) or d) of this definition.

Period of insurance  

Period of insurance is from when your policy starts to when it ends and is shown in your certificate of insurance. 

Policy

Refers to your insurance contract.

Total loss

Your car is a total loss if it is stolen and unrecovered after 14 days or when the insurer decides it is uneconomical, impractical or unsafe to repair. 

Uninsured driver

A driver is an uninsured driver if neither the driver nor the vehicle owner has motor insurance or they have insurance but it does not cover damage to your vehicle at the time of the incident. 

You, your

The person or people shown as insured on your certificate of insurance. 

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