Glossary Archive

A

Accident Assist: Accident assist handles tow, claim notification and logistics.
Adventure Bike: Adventure bikes balance road and off-road capability.
Agreed Value: Agreed value is set in advance and locked into the schedule, irrespective of market movements.
All Risks: All risks cover flips the logic: covered unless excluded, not the other way round.
Annual Mileage: Annual mileage is a key motor rating factor.
Approved Repairer: Approved repairers meet quality and pricing standards.
Average Clause: Average applies: claim x (sum insured ÷ true value).

B

Balloon Payment: Balloons leave a residual amount due at term end.
Battery Backup Cover: Battery banks specified at replacement value.
Bike Tracker: Bike trackers transmit location for recovery operators.
Body Corporate: Body corporate insures shared structure.
Bond Insurance: Bond insurance is mandatory for mortgaged properties.
Borehole Cover: Boreholes insured as fixed installations.
Boundary Wall: Boundary walls covered for sudden damage not wear.
Broker: A broker is a registered FSP who advises on and arranges insurance policies between client and insurer.
Buildings Insurance: Buildings insurance protects permanent structure.
Burst Geyser: Bursting geysers are named perils.
Burst Pipe: Burst pipes are insured perils.
Business Use: Business use covers work-related travel not amounting to commercial hire.

C

Cancellation: Cancellation terminates cover prospectively from a stated date.
Car Hire: Car hire cover provides a daily rental allowance and a max number of days.
Car Warranty: Extended car warranty insures component failures outside manufacturer warranty.
Caravan Insurance: Caravan Insurance Caravan policies cover unit plus camping gear.What is caravan insurance?Caravan plus optional camping contents. As a King Price client you will see caravan insurance referenced on…
Cession: Cession transfers the right to claim proceeds from policyholder to financier.
Chilli Cover: Chilli targets classics and collectables on agreed-value terms.
Claim: A claim is the policyholder's request for indemnity under the policy.
Claims History: Claims history is a key rating factor used by underwriters.
Classic Car: Classic cars are typically insured at agreed value with usage restrictions.
Classic Car: Classic cars are typically insured at agreed value with usage restrictions.
Code 2: Code 2 is the standard used-car status.
Code 3: Code 3 vehicles have been declared rebuilt after structural damage.
Code 4: Code 4 vehicles cannot lawfully return to the road.
Code Red: Code Red links to 24/7 armed response.
Collectable Car: Collectables derive value from rarity, age or significance.
Commercial Use: Commercial use generally needs a commercial policy.
Comprehensive Contents: Comprehensive contents is broader option.
Comprehensive Cover: Comprehensive cover indemnifies the insured against the widest range of motor perils.
Compulsory Excess: Compulsory excess applies automatically; cannot be removed.
Concours Condition: Concours condition refers to top-tier restoration grade.
Consequential Damage: Consequential losses are typically excluded.
Contents Calculator: Calculators help avoid under-insurance.
Contents Inventory: Inventories accelerate contents claims.
Contents Sum Insured: Contents sum insured should equal full replacement value.
Cooling-off Period: Statutory cooling-off lets you back out of a new policy quickly.
Credit Shortfall: Credit shortfall (gap cover) bridges the depreciation/finance balance gap.
Cruiser Bike: Cruisers are usually easier to insure.

D

Debit Order: Debit order is the default premium-collection method for short-term insurance in SA.
Decreasing Premiums: Decreasing premiums automatically lower your monthly cost in line with your car's reducing market value, so you stop paying yesterday's price for today's car.
Domestic Worker Liability: Domestic worker liability addresses workplace exposures.
Driver’s License: Driver's licenses must be valid; expired licenses can void cover.

E

Earthquake: Earthquake cover included in most SA buildings policies.
Emergency Assist: Emergency assist is a bundle of practical help benefits.
Endorsement: Endorsements amend the schedule and may change the premium.
Excess: Excess (or deductible) is the fixed amount the policyholder pays toward a covered loss before the insurer pays the rest.
Exclusion: Exclusions carve out risks the insurer will not accept.
Explosion: Explosion is a named peril alongside fire.

F

Fire and Fury: Fire and fury is a named-perils contents option.
Fire Damage: Fire is the foundational insured peril.
Firearm Cover: Firearm cover requires SAPS-compliant storage.
Flood: Flood cover responds to surface water inundation.
Fronting: Fronting is the misrepresentation of who regularly uses the insured vehicle.

G

Gap Cover: Gap cover is essential in early years of a finance deal.
Garaged: Garaging is a key rating factor.
Garden Contents: Garden contents insured under contents subject to storage.
Gear Lock: A gear lock is a deterrent that prevents the gear lever from moving.
Generator Cover: Generators insured under contents or buildings if fixed.
Geyser: Geysers are critical insured fixtures.

H

Hi-jack: Hi-jacking is forceful seizure of the vehicle; tracker compliance is critical.
Hi-jack Excess: Hi-jack excess is separately specified in the schedule.
Hire Class: Hire class sets the daily rate and vehicle category.
Home Assist: Home assist sends qualified trades for household emergencies.
Home Contents Insurance: Home contents indemnifies movables inside the insured residence.
Household Contents: Household contents is underwriting term for everything inside.
Householders Liability: Householders liability extends home cover.

I

Immobiliser: Immobilisers prevent unauthorised engine start.
Inception Date: Inception is the moment risk transfers to the insurer.
Indemnity: Indemnity is the foundational principle of short-term insurance.
Insurable Interest: Insurable interest is a legal prerequisite for a valid insurance contract.
Insured: The insured is the party whose interest is protected by the policy.
Insurer: Insurer is the licensed entity that accepts the risk in exchange for premium.
Inverter Cover: Inverters are high-value items needing specification.

K

King’s Cab: King's Cab dispatches a driver to drive you and your car home.

L

Landslip: Landslip is a buildings peril.
Lapse: Lapsed policies have no force; reinstatement may be required.
Learner’s License: Learner's drivers cannot drive unsupervised.
License Disc: License discs prove the annual vehicle license is paid.
Lightning Damage: Lightning is a named peril.
Limited Cover: Limited cover offers reduced-scope motor protection at a value price.
Little Dings and Tyre Things: One-bundle cosmetic + tyre/rim cover.
Load Shedding: Load shedding triggers claim categories like surge.
Loss Adjuster: Loss adjusters validate facts, quantum and policy cover on larger claims.
Loss of Use: Loss of use is normally compensated by a hire car benefit.

M

Malicious Damage: Malicious damage cover targets vandalism by third parties.
Market Value: Market value is the price a willing buyer would pay a willing seller in normal trade.
Material Fact: Material facts must be disclosed at inception, renewal and on changes.
Mechanical Breakdown Insurance: MBI is the industry term for extended warranty cover.
Medical Assist: Medical assist coordinates emergency medical response.
Mileage Limit: Mileage caps keep usage hobby-grade rather than daily.
Misrepresentation: Misrepresentation undermines the contract of utmost good faith.
Money In The Home: small sub-limit.
Motorbike Insurance: Motorcycle cover ranges from third party only to agreed value comprehensive.
Multi-Car Discount: Multi-car discount rewards household policy consolidation.

N

Named Perils: Named perils policies cover only the perils explicitly listed; everything else is excluded.
NaTIS: NaTIS records ownership, code, license and history.
No-Claim Bonus: NCB is a premium discount that grows with consecutive claim-free years.
No-Excess 45+: No-excess 45+ removes the standard excess on qualifying motor claims for older clients.
Non-Disclosure: Non-disclosure can void cover from inception.

O

OEM Parts: OEM means parts identical to factory-fit components.
Outbuilding: Outbuildings are included in buildings sums insured.
Outstanding Finance: Outstanding finance is the unpaid capital balance.

P

Panel Beater: Panel beaters straighten, weld, fill, and paint damaged body panels.
Peril: A peril is the cause of loss; insurance lists perils as covered or excluded.
Pillion Passenger: Pillion liability is bike-specific third-party cover.
Pillion Passenger: Pillion liability is bike-specific third-party cover.
Policy Schedule: The schedule is the bespoke part of your policy , the bit that's yours alone.
Policyholder: Policyholder is the named party in the contract of insurance.
Power Surge: Power surge insured under contents.
Premium: An insurance premium is the price the insurer charges to provide cover over a defined period. Calculated from risk factors like age, area, claims history and asset value.
Private Use: Private use excludes commercial activity for hire and reward.
Public Liability: Public liability covers third-party injury and property damage.

Q

Quad Bike Insurance: Quad cover handles off-road four-wheel ATVs.
Quote: A quote is a non-binding price estimate subject to underwriting confirmation.

R

R1 Motorbike Gear: Part of King Price's R1 range.
Regular Driver: Regular driver is a rated person; mismatch with actual usage is fronting.
Renewal: Renewal is the recurring continuation of the policy at each anniversary.
Replacement Value: Replacement value (new-for-old) is the basis for setting sums insured on most household and possessions policies.
Repudiation: Repudiation is the insurer's denial of a claim, citing policy grounds.
Restomod: Restomods combine vintage looks with modern mechanicals.
Retail Value: Retail value is the listed dealership selling price as per published vehicle guides.
Riding Gear: Riding gear is core motorbike kit, insurable individually.
Risk Profile: Risk profile is the underwriting view of you and your assets, built from rating factors.
Roadside Assist: Roadside assistance keeps you moving in non-accident incidents.
Roadworthy Certificate: Roadworthies are issued at SABS-approved testing stations.

S

Salvage: Salvage is the residual value of an insured item after a total-loss settlement.
Scooter Insurance: Scooter cover follows motorbike rating principles.
Scratch and Dent: Scratch and dent handles small panel/paint damage cheaply.
Sectional Title: Sectional title splits ownership between units and body corporate.
Smash-and-Grab: Smash-and-grab is a common SA urban crime; insurance treats the window and the stolen contents separately.
Smoke Damage: Smoke damage rides with fire claims.
Solar Panel Cover: Solar systems insured under buildings.
Specified Radio: Specified radio cover extends to non-OEM audio gear.
Spoilt Food Cover: Spoilt food is a contents sub-benefit.
Sportbike: Sportbikes attract higher motorbike premiums.
Steering Lock: Steering locks are mechanical deterrents.
Storm Damage: Storm cover standard on buildings and contents.
Student Contents: Student contents can ride on a parents policy.
Subrogation: Subrogation transfers your recovery rights to the insurer once they've paid out.
Subsidence: Subsidence cover excludes pre-existing defects.
Sum Insured: Sum insured is the upper financial limit of the insurer's liability for a given item or section.
Surge Protector: Surge protectors mitigate appliance damage.
Swimming Pool Cover: Pool cover protects fixed installations.

T

Tenants Contents: Tenants need own contents cover.
Theft Excess: Theft excess is often higher than basic accident excess.
Theft With Forced Entry: Forced-entry theft is standard insured burglary.
Theft Without Forced Entry: Insurers limit cover where no break-in evidence.
Third Party Fire and Theft: TPFT excludes own-damage repair but covers theft, fire and third-party liability.
Third Party Only: TPO covers legal liability to third parties only.
Total Loss: Total loss = payout of value; partial loss = repair.
Towing: King Price arranges authorised towing; client-arranged tows are not covered.
Tracker: A vehicle tracker transmits location data to a recovery operator.
Trade Value: Trade value is the wholesale price a dealer offers when buying your car.
Trailer Insurance: Trailer insurance covers towable trailers.
Tyre and Rim: Tyre and rim cover plugs a common gap in standard motor cover.

U

Under-insurance: Under-insurance triggers the average clause: payouts are scaled down by the ratio of sum insured to actual value.
Underwriter: Underwriting is the process of evaluating risk; the underwriter applies rules and pricing.
Utmost Good Faith: Both parties must disclose all material facts when entering and during a policy.

V

Vacancy Rule: Vacancy rule excludes losses during prolonged unoccupancy.
Vandalism: Vandalism falls within malicious damage cover.
VESA Approved: VESA certifies vehicle security and recovery products to a defined standard.
Vintage Car: Vintage classification is age-based.
Voluntary Excess: Voluntary excess sits on top of compulsory excess.

W

Waiting Period: Waiting period defers cover for specified risks for a set number of days.
Water Damage: Water damage cover excludes gradual seepage.
Wear and Tear: Wear and tear is universally excluded from insurance.
Window Cover: Window cover handles cracks and chips often with a lower glass excess.
Write-Off: A write-off is declared when economic repair isn't viable.

Y

Young Driver Excess: Young driver excess reflects higher accident frequency for inexperienced drivers.