Third Party Insurance VS Comprehensive

LChumpmaster on 30/01/2017 - 12:09

Hi Guys,

Looking for some advice on whether to go with Comprehensive insurance, or third party property damage insurance.

The car is a 2008 Honda Sedan on redbooks quotes it's value at about $9,000 - $11,000 value.

The question I'm having now is why would i pay $800 (renewal notice from Bingle). Where the car isn't worth that much anymore. The way i see it 6-7 years worth of premiums (assuming the car depreciates a straight line down), and it's almost the value of the car I'm paying insurance companies.

Doing a quick browse on quotes for comprehensive it's looking like circa $800- $1,100 p.a in terms of premiums.

Third party property damage is probably half that at $350 - $600. What do you guys think? I've always gone comprehensive insurance. Any drawbacks on Third party insurance only that i should be aware about?

Automotive

Comments

  • Gunther on 30/01/2017 - 12:15
    +2

    Can you afford to replace your vehicle directly out of your pocket tomorrow if the need arose?

    I've always owned vehicle $7k and under with just Third Party Property & Theft with sufficient funds available to buy a new car tomorrow if needed.

    Also depends how bad/good a driver you are, most people are in the bad category…

  • kerfuffle on 30/01/2017 - 12:25
    +1

    Comprehensive will save your bacon if someone hits you and try and pull a dodgy on you (speaking as someone who had to make two not-at-fault claims in the space of four months). Make sure to take out the hire car option!

    • 1ch1go on 30/01/2017 - 14:16

      Some third party insurance have uninsured motorist option for this specific event.

  • k-rokfm on 30/01/2017 - 12:59

    The car is a 2008 Honda Sedan on redbooks quotes it's value at about $9,000 - $11,000 value.
    The question I'm having now is why would i pay $800 (renewal notice from Bingle). Where the car isn't worth that much anymore.

    Its worth 10x the amount you have been quoted. I would say thats a little bit more.

    What is your driving history like? How much will you be driving it? Its all about luck and risk honestly. You could buy comprehensive your whole life and never need it. Or someone could smash your car in the carpark and you could need to pay to get it fixed with third party. Its all about the risk you want to take. Some people dont even have third party as they like to "self insure" (read: just dont buy insurance and dont put any of the money away, so if they have a crash theyre stuffed)

    I have only ever had third party property/fire/theft on any of my cars or bikes - its just not worth it to me as i feel i am a good driver. But i take the risk of if i stuff up or if someone hits me and i cant get their details

  • Trying2SaveABuck on 30/01/2017 - 13:03

    Like all insurance it is only of value if you use it.

    I'd say for a car worth less then 6-7k 3rd party insurance is fine but anything more then that i'd stick to full comp

    that's my 2cents

  • John Kimble on 30/01/2017 - 13:08
    +2

    Comprehensive. Too many idiots out there to risk it I reckon.

    Have you considered Coles? I was getting quoted at least $800 from most places (including Coles) for my previous car, cheapest I found was $600 from Bingle, I then went with Coles for $540 as they beat it by 10%. Just check you are eligible.

    • ChrisLevo on 30/01/2017 - 13:16

      I second that.

      $610 for comprehensive for our 6 month old Hyundai Sonata.

      The cheapest around, by far.

  • Stewardo on 30/01/2017 - 13:57

    Try Coles insurance and wind down the agreed replacement price and put up the excess if you want cheaper premium.

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