3rd Party or Comprehensive Insurance For A $24,000 car

bargin424 on 15/11/2015 - 23:36
Last edited 16/11/2015 - 18:45 by 1 other user

Hi all,

Just wanted your view points on whether to get 3rd party insurance or not.

I always thought that 3rd party means:

  • If someone hits you (you're NOT at fault), the insurance company will pay out your car. Market value/agree price of the car is paid.
  • If someone hits you (you're AT fault), the insurance company will NOT pay out

But from reading policies, it seems that:

  • If someone hits you (you're NOT at fault), the insurance company will pay out your car. Only 3-5k is paid depending on company.
  • If someone hits you (you're AT fault), the insurance company will NOT pay out

Is this correct?

Edit with "what if" scenarios, assuming I am NOT at fault and I have 3rd party insurance:

  • Other driver has 3rd party insurance. How much will be paid to me in an accident?
  • Other driver has 3rd comprehensive insurance. How much will be paid to me in an accident?
  • Other driver does NOT have insurance. How much will be paid to me in an accident?
Automotive

Comments

  • nocure on 15/11/2015 - 23:47
    +12

    Comprehensive…no brainer.

  • Randxyz123 on 15/11/2015 - 23:50
    +5

    Comprehensive easy one.

  • dylanando on 15/11/2015 - 23:52

    Yeah, Always get comprehensive. For few extra dollars, So worth it

    • bargin424 on 16/11/2015 - 00:01

      It's about $1500 more!

      • ozhunter on 16/11/2015 - 00:05
        +1

        Try a different company.

        But from reading policies, it seems that:
        - If someone hits you (your NOT at fault), the insurance company will pay out your car. Only 3-5k is paid depending on company.

        AFAIK, that's correct; though I'm pretty sure that's if the other person doesn't have insurance. If they do your insurance company should be getting the other person to pay for it.

      • dylanando on 16/11/2015 - 00:12

        Yeah, Few dollars :P. Try bingle?

      • DaaC on 16/11/2015 - 01:06

        Hi OP,

        $1500 for a $24k car is too much. Try other insurance.

        • airzone on 16/11/2015 - 13:11

          I had a quote for $12.5k for a $25k car once from NRMA.

          But that's probably because I was 22 and just bought a turbo skyline and was statistically likely to wrap it around a power pole while listening to the Initial-D soundtrack sometime later in the week.

          Op: you need to shop around.

  • Ughhh on 16/11/2015 - 00:10
    +5

    New car/car that you love and care about = comprehensive
    Old crappy cheap car/car where it doesn't matter if you got a dent on it= 3rd party

    • If someone hits you (your NOT at fault), the insurance company will pay out your car. Market value/agree price of the car is paid.
    • If someone hits you (your NOT at fault), the insurance company will pay out your car. Only 3-5k is paid depending on company.

    The insurance company you mentioned there will most likely not be your insurance company (except for #2, but that depends), but the other partys insurance. If the other party does not have insurance or chooses to ignore you, you may have a tough time getting the money out of them. If you had comprehensive, (as long as you have the other guys details) if they choose to ignore you, you can make a claim with your insurance and your insurance will get your car repaired and they will do the chasing.

    • [Deactivated] on 16/11/2015 - 11:21

      Well, let's suppose this scenario as an example.
      I rear-end a vehicle, and I only have third party insurance. The driver I impacted either has no insurance, or they too have third party insurance. How would the claims process work then?

      • Ughhh on 16/11/2015 - 11:38
        +1

        I would ask for your insurance and personal contract details, then call your insurance or my insurance who will contact you. You'll pay for your excess, my car will be repaired, yours won't.

        I haven't actually gone through that as I have comprehensive. But I know someone who was in 3rd party and was hit.

        Repairing a new car can be costly. I'm not familiar with prices but I was surprised to find that a new genuine car door cost $1k alone, not including Labour.

    • slow on 16/11/2015 - 13:02

      This happened to me recently. I got hit and my third party insurer (RACV) did not want to know about it. I had to chase the other person myself. Fortunately they were decent and insured and they paid.

      If you have comprehensive your company will chase them and you don't have to do anything

  • ESEMCE on 16/11/2015 - 08:59
    +2

    Can you afford to replace a $24k car out of your own pocket should you crash it or someone with no insurance crashes into you?
    If so, then just go for third party.
    The fact that you're asking implies to me that you (like most people) can't afford that sort of expenditure, so you should get comprehensive.

  • Randxyz123 on 16/11/2015 - 09:44

    If you go with 3rd party make sure that if you hit a brand new Mercedes you won't be up for the bill.

  • tomleonhart on 16/11/2015 - 10:11

    Sorry but have to do it.

    You're*

    Also: Comprehensive.

    • 01011010 on 16/11/2015 - 10:59

      Probably worth clarifying where you are correcting someones grammar if you want them to learn.

      • [Deactivated] on 16/11/2015 - 11:11

        **someone's

        You mean like this?

        ;-)

      • tomleonhart on 16/11/2015 - 11:32

        correcting OP :P

  • Randxyz123 on 16/11/2015 - 11:03

    Other driver does NOT have insurance. How much will be paid to me in an accident?

    Probably nothing you'll have to chase them up yourself…

    Other driver has 3rd comprehensive insurance. How much will be paid to me in an accident?

    You mean comprehensive insurance?? Your car will be repaired and paid for by their insurance

    Other driver has 3rd party insurance. How much will be paid to me in an accident?

    Again you'll have to chase them yourself so in otherwords why not get comprehensive?

  • airzone on 16/11/2015 - 13:14

    Once, I had my crapbox 3rd party insured car hit by a car with no insurance. I was going to have to personally sue him for the repair bill.. Which for a crapbox worth less than it's rego, was too much stuffing about.

  • opt on 17/11/2015 - 08:02

    If someone hits you (you're NOT at fault), the insurance company will pay out your car. Market value/agree price of the car is paid.

    The other party's insurance company will pay, NOT yours! This also means you'll have to chase them for it. There is no agreed value in 3rd party, you'll have to settle for whatever money other party offers, otherwise prepare to take them to court.
    If the other party is not insured or if they play hard ball then you are in trouble.
    Bottom line : 3rd party is same as not having any insurance in terms of fixing your own car !

    If someone hits you (you're AT fault), the insurance company will NOT pay out

    Correct.

    If someone hits you (you're NOT at fault), the insurance company will pay out your car. Only 3-5k is paid depending on company.

    No, depending on the evidence, your skill and perseverance fighting the case, there is always the chance of getting the market value.

    If someone hits you (you're AT fault), the insurance company will NOT pay out

    Correct.

    What if scenarios :

    Other driver has 3rd party insurance. How much will be paid to me in an accident?

    As said above Depends on how well you handle the case

    Other driver has 3rd comprehensive insurance. How much will be paid to me in an accident?

    Whether they have 3rd party or comprehensive doesn't matter. Your experience depends on their company, not the cover.

    Other driver does NOT have insurance. How much will be paid to me in an accident?

    Depends on the policy you take out, some 3rd party plans do have a special cover for uninsured drivers. read your PDS.

    Bottom line : For a 24k car Comprehensive is a must ! Unless you are a lawyer ;). Even then, you are still out of pocket in an at fault accident.

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