Glossary of Insurance
Compulsory third party insurance is the most important type of car insurance. It is for death and injury to people if you are in an accident. Each state and territory has different rules for this type of insurance. You can also get these extra types of car insurance:
- Third party property insurance covers the cost of damage you have done to other people’s property (for example, their car or home).
- Third party, fire and theft insurance covers the cost of damage you have done to other people’s property. It also pays some money to pay for damage to your own car if it is stolen or on fire.
- Comprehensive insurance covers the cost of damage to your own car and damage your car does to other people’s property if it is in an accident (including fire) or if it was stolen.
You can claim money from your insurance company if something goes wrong. How much money you can claim from your insurance company depends on what is in your insurance policy.
Compulsory third party insurance
The most important type of car insurance. It is for death and injury to people if you are in an accident.
Contents insurance
Covers the cost of replacing or fixing your household items and possessions, including furniture, clothes, appliances and jewellery.
Disability insurance
Money you get if you cannot work. For example, if you are injured in an accident and cannot work any more, you need money to live on.
Excess
How much you must pay with a claim. The amount is specified in the insurance policy.
Health insurance
Covers some of the costs when you are sick or need medical help for a long time. It is so you do not have to worry about paying your bills. Health insurance sometimes means you pay less for hospital fees and other costs.
Home insurance (building insurance)
Covers the cost of replacing things if something happens to your home (for example, damage from a fire or a storm). It covers the cost of replacing or fixing your home, including the walls and roof.
Income protection
Pays for the money you lose (income) if you cannot work because you are sick or injured. Insurance Money you pay in case things go wrong. It covers the cost of replacing things if something happens.
Insurance company
A company that provides the insurance.
Insurance policy
A written legal agreement for what you and your insurer agree is being insured. It includes:
- what is being insured and how
- hings not included in your insurance policy
- how much you will get if you make a claim and the claim is accepted
- how much you have to pay for your insurance policy – this is called the premium.
Life cover
See life insurance.
Insurer
A company selling the insurance.
Life insurance
There are many types of life insurance and you need to choose what you need. These are some examples:
- Life cover (also known as life insurance or death cover) pays a set amount of money when you die. The money goes to the people you choose to receive the money (this is written in your policy).
- Total and permanent disability cover helps to cover the cost of rehabilitation, debt repayments and living if you have a disability. You can put this in your life cover instead of having a separate policy.
- Trauma cover covers the cost if you have a type of illness or injury that usually has a big impact on your life (such as cancer or a stroke).
- Income protection covers the cost of the money you lose (income) if you cannot work because you are sick or injured.
Mobile phone insurance
Covers the cost of some things that can happen to your phone (for example, if stops working or if you damage it). You can make a claim and get your mobile phone fixed or get a new one.
Premium
How much money your insurance company charges you to give you insurance.
Total and permanent disability cover
Covers the cost to help you pay for rehabilitation, debt repayments and living if you have a disability.
Trauma cover
Covers the cost if you have a type of illness or injury that usually has a big impact on your life (such as cancer or a stroke).
Terms and conditions
The rights and responsibilities of each party mentioned in the contract.
Third party, fire and theft insurance
Covers the cost of damage you have done to other people’s property with your car. It also pays some money to pay for damage to your own car if it is stolen or on fire.
Third party property insurance
Covers the cost of damage you have done to other people’s property with your car (for example, their car or home).
Travel insurance
Travel insurance covers the cost of certain things if you get in trouble when travelling away from home. For example, if:
- you get sick or injured and need medical attention
- you lose something and have to get a new one
- something of yours is stolen
- your travel plans are changed (for example, if your flight is cancelled).
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