crashed out in practice for the Australian grand prix
Solution 1:
The phrase crash out is an example of a phrasal verb:
phrasal verb, n: an idiomatic phrase consisting of a verb and another element, typically either an adverb, as in break down, or a preposition, for example see to, or a combination of both, such as look down on.
In this case, crash out is not used in the usual sense of crash out, but as it's more commonly used in motorsports commentary. In this usage, it means that Schumacher damaged his car badly enough in that crash during that practice session that he could no longer take part in it.
Formula One normally has two practice sessions on the Friday of a race weekend, and the race teams can normally repair the car in time for the driver to take part in the rest of the race weekend (a third practice session, and qualifying, on Saturday, and the race on Sunday).