At what price level is comprehensive insurance not value?

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  87percent on 24/08/2019 - 08:46

  +4

  Step 1 - search forums for "3rd party insurance" threads
  Step 2 - get comprehensive insurance

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  jackinyourbox on 24/08/2019 - 08:57

  +2

  Weigh up cost to repair or loss values. Generally a personal decision

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  o53djz7qTPY4der on 24/08/2019 - 09:00

  +1

  I have a second car that we got for 7K with 123k on the clock.

  At $55 per month, I decided that comprehensive was worth it. At very least, it means I don't have to chase up uninsured drivers. It is insured for 7k - so minus excess, if it is a write off I wont lose anything. Excess is $500.

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  jtc13 on 24/08/2019 - 09:13

  +4

  Depends on your financial situation. $7000 is not a huge amount to risk for some but is for others.

  Thinking about it this way you are risking 40% more than you normally do at 5k mark so if 3rd party is 40% cheaper than comp you have not changed your risk profile.

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  EightImmortals on 24/08/2019 - 09:22

  Yeah you have to do the sums I guess. My car ended up on 3rd party after getting written off to some hail damage. Car is perfectly fine otherwise and it will cost me if it really gets written off but at least I'm covered if I wipe out someone's Lambo. :) But before that it was costing around $800 a year for a car that's only worth about 4K now (on paper) so I'm leaning towards 3rd party only anyway. Dealers choice though.

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  Cheeper on 24/08/2019 - 09:44

  Payout with total loss (Write off) is usually wholesale price not the price you paid for the car as you found out before.
  Subtract from that the cost of the insurance premium and your excess if you make a claim.
  That write off value keeps shrinking?
  In reality you are only insuring for a part of the replacement cost of the car.
  On a 7k (with a wholesale value of $??) car I would not bother with comp insurance and go with TPP if you are a "careful driver".
  The main thing is to have cover for that $100,000 other car you may meet up with. :-)

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  Some Human on 24/08/2019 - 10:07

  I switched to third party a year ago because my car dropped below 4K in value and I don’t drive in traffic anymore. If it somehow got written off while on third party, I could easily just buy another one as they’re so cheap now.
  If in the future I have a job that requires me to drive in peak hour traffic where everyone’s texting their mates while weaving through traffic as they do here in Melbourne, I will switch back.

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  jirvin_4505 on 24/08/2019 - 11:55

  Thanks heaps for the reply’s
  I’ll do some maths

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  AdosHouse on 24/08/2019 - 12:28

  +3

  My point is where I can afford to lose my vehicle, without ANY money back (assuming an uninsured other driver) AND also can afford to be without a car for a couple of weeks at a minimum.

  I have been in 6 "accidents" in my life and none of them were my fault. But each time I call my insurance up and let them deal with it.

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  Euphemistic on 25/08/2019 - 15:39

  I had an $8k car on TPP, with the extra cover for an uninsured driver hitting me. What I hadn’t considered was the hassle of someone hitting me and stuffing me around for repairs/write off payment, following all the “I only have TPP and someone hit me” threads. End of the day though, I was prepared to either make some repairs myself or just straightforward replace it with a cheaper car if necessary in the short term.

  For the car I upgraded to I discovered the ‘cheap’ insurers weren’t that much more expensive for the extra cover of comprehensive. That combined with a higher value vehicle ($17k) and I now have comprehensive.

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  lovetodiscuss on 02/09/2019 - 18:26

  I learned the hard way that comprehensive insurance doesn't translate into repaying the full price of the car if in an accident regardless. You will learn how insurance company "interpret" the terms when you make a claim and the hoops you have to go through to get them to write the cheque.