Car is worth around 20-25k
Currently only drive to work around 5km from home. Never had an accident.
Comprehensive ~ $1500
Third party fire and theft ~ $550 or possible $275 if AAMI is still offering the half price deal.
Third Party or Comprehensive?
[Deactivated] on 03/10/2020 - 12:07
Poll Options
- 285Comprehensive
- 19Third Party fire and theft
Comments
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How common is that though? Is it not a legal requirement to have insurance ?
No it’s not a legal requirement, except for the component that covers other people in a crash. There is no compulsion to cover other property.
except for the component that covers other people in a crash.
Which is included in the rego
Now what if they were unregistered?
@capslock janitor: It covers injury to bodies, not damage to property.
How many times does this need to be explained?
@capslock janitor: Unregistered means not covered - at all. I guess then injuries are covered by public healthcare somehow. Probably means that ongoing treatment will be more of a hassle to get.
@Euphemistic: Nope, the state provides the Nominal Defendant that you can sue in these circumstances.
But for the original poster, there are a LOT of people driving around with no property insurance - not least because some still think their CTP provides TPP (Third Party Property) insurance.
If they are not going to make TPP compulsory (as it is in many places in the world) then at least a question on insurance should form part of the driver's licence test, and also make it very clear on the rego renewal what your CTP does NOT cover.
I don't know about Victoria where you are, but in NSW, it's a legal requirement to have compulsory third party insurance (also known as green slip), which covers injuries sustained in a car accident. The insurance you're looking at is to cover damages made.
I've had four not-at-fault accidents … All covered by comprehensive insurance because I don't have the time nor patience to chase people who drive into my car for money so I can get my car fixed
It’s happened to my wife and I three times, nearly 4 times.
Once a guy rear ended my wife’s car, quickly reversed, hard right down a side road and sped off.
Second time stupid woman treated 2 lane roundabout like 1 lane and drove into the side of our 2 month old car. No insurance… offered us $2 worth of dress jewellery she had in the car as settlement for $11k damage.
Third time car parked and someone reversed into rear bar (hard, cracked the bar).
Fourth time car also parked, someone reversed and smashed grill, bonnet and front bar. Guy drove off. Thankfully a witness actually chased him down for us and got details!!
We had full comp on all occasions.
Melbourne is not a nice place and full of dodgy people. Don’t get third party unless you’re happy to treat your car like a disposable item.
There are heaps out there. An international student rear ended my wife’s QASHQAI in a brand new Mercedes, and the guy had no insurance.
Was glad we were fully insured as I just took a bunch of photos of the cars and his licence, gave it to RACV and didn’t cost us a cent. Her car was fixed immediately, and they chased him for the money.
Guy tried to convince me to hold off on filing the claim and fudge the dates so he could organise insurance. Told him he can dodgy whatever he likes, I’m filing the claim in 15 minutes when I get home and he can deal with RACV.
You could report that guy for insurance fraud
@bryans: Had no interest in being involved with him, and once we left the scene I never had to interact with him again thanks to comprehensive insurance.
Happened to me once. Actually he had insurance, but claimed it was my fault (along with his three witnesses), glad I had insurance so I wasn't going to court for it. Gave them enough evidence to prove what he claimed wasn't possible and his insurer ended up paying mine, but if I hadn't had insurance it would have been plenty expensive.
More common would be people who run into you in carparks, etc and then just leave. That happened to my dad (car was totalled, on it's side when he came back out of Westfield, and in a camera deadspot). Basically any time you wouldn't want to throw the car away for nothing more than the insurance + excess price, the insurance is worth it.
Third party covers this up to a certain dollar amount. More than the value of my car, in my case.
Most 3rd party policies also cover damages by uninsured drivers up to a certain amount (e.g: AMMI is up to $5k). but having said that I still recommend comprehensive for a 20k car. Bumping up your excess can reduce your premium. Better to have a comprehensive insurance with a 2k excess than a 3rd party cover.
If it’s only 5km, get rid of the car and walk to work.
5km is about an hours walk. Lot of time before and after each day.
Personally I'd get a bike for that distance. On a bike it'd easily be 15 minutes each way and no/little messing about parking
More difficult with nightshifts, especially for a female. Also not sure whether they will be there after March.
Absolutely fair call. Nightshifts are difficult for anyone to consider walking.
If you don’t think it’s worth the additional cost for comprehensive just go for third party then. Just be aware that if any of the scenarios already listed here occur, you will be out of pocket.
Yep, thanks! I think might just cop it and get comprehensive for peace of mind.
@jedimaster: Make sure you also get a quote from Woolworths Insurance.
I found them to be the cheapestr.
They also discount if your annual mileage is low.@Gekov: Seconding Woolies insurance. The discount for capping my annual kms was huge, and combined with the $100 gift card/points promotions they often have I ended up paying well under half of what I was being quoted from everyone else.
@KateMC: Woolies also give 10% shopping discounts to those with their insurance policies.
I regularly get 10% discount offers to policy holders.
Nightshifts are difficult for anyone to consider walking.
Carry a knife, gun, bat, sword, machete, club or pepper spray. You should be all set in case you get mugged on your way to or from work.
@Zachary: How about Op carries you around, and if heshe is about to get mugged, heshe will just throw you at the muggers, since you're the smart one carrying a gun and sword in Australian suburbia.
@Ughhh: …well first she'll have to fly to perth, pick me up and then fly us back to melbourne and then pay me to be her mugger sponge……
@Zachary: A 3rd party will teleport you to where OP is, pay you nothing to be the mugger sponge and you'll accept it, because you're dreaming in some other universe.
You better be sweating your balls off after that 5km 15 minute ride…. geez, not everyone has a road bike lol
20 kph average shouldn't be too bad
You would be surprised how many accidents happen close near where people live.
Almost exactly the same proportion as the time spent driving near home?
Unless you can afford to replace a $20k vehicle if an uninsured (or belligerent) driver hits you get comprehensive.
My margin for TPP was around $8k vehicle value. It’s probably time to reconsider on my current vehicle. Will have to check it’s current value. Then again, I’m also earning less so there is less cash to cover loss of vehicle.
"Never had an accident." No matter how cautious you maybe or how good a driver you are, you never need insurance till you need it
Everyone has never had an accident until they have.
exactly
Do you live in the ghetto or have a highly stolen vehicle? Those prices are outrageous. What car is it, how old are you?
Subaru outback, 23. I had an old Aurion and it was 2k+ to insure haha (I went third party for that). I think my area is alright, never really heard of vehicle theft being much of an issue
It's your age. Just tried a 2014 outback at my address with your age, $1500. Changed age to 35, $800.
When does it change? I've had insurance since I got my P's for my Aurion and 4 years later, my premium never went down, sometimes up.
@[Deactivated]: I would assume 25+. That's when it asks if you want to exclude all people under 25 driving.
@Whisper Quiet: I think it keeps going up with the main drivers age. I recently wanted to borrow dads second car because mine was in the shop, but he had it insured for over 40s or 50s thinking I’d never drive it.
@brendanm: From my job (Commercial Insurance), it's usually 25 as main driver, and 30 when premiums start dropping.
Personally, I cannot wait to be 30 so I don't look like a liability on my own policy!
Melbourne in general is expensive for insurance compared to regional Vic for instance. Even with that, $1500 is a helluva lot.
My daughter just turned 23 and her fully comprehensive insurance policy that she renewed last month was $843.83 with NRMA. Her car is insured for the same value $25K and we live in Brisbane. That premium of $1500 sounds ridiculous even for Victoria.
To the insurance underwriters, Brisbane drivers > Victorian drivers :D
Full comp on the 2005 Honda Accord Euro that my two <25 kids drive is $2500. The car is worth $3500. Southern Sydney, parked on street.
We just get Third Party Property Fire Theft for ~$450
I'm 23 and it costs me $1500 to insure with a 2019 Toyota Corolla.
Please, get the comprehensive because if you come back here after a few months with one of those "who is to blame?" thread you will find no empathy. :)
Those prices are terrible. Make sure you quote with other companies. I've had RACV for years. It was the cheapest on the first year, and I negotiated the price last year. Last month, they wanted to increase the premium again. I didn't even call them to negotiate, just compared other options. Most insurers had a comparable price, but then I found AAMI to be 40% less (comprehensive, including roadside assistance). For my partner's car, Youi was a lot cheaper a few months ago-different model, but all the conditions are the same (e.g., address, the two drivers in the mid-30s, no claims). The formula they use to calculate the premium remains a mystery.
My AAMI: car worth 40k, Melbourne-VIC, comprehensive, excess $650, plus-flexi Premium excess $250 (let's say $900 total excess), windscreen and roadside included, hire a car NOT included. Legal liability $20M
Premium $735 (Sep/2020-Sep/2021) (quoted over $1000 on RACV and Youi)My Youi: car worth 35k, similar conditions as above, premium $721* (quoted over $1000 on RACV and AAMI) *less insurance relief of $7/month in the last months
Please, get the comprehensive because if you come back here after a few months with one of those "who is to blame?" thread you will find no empathy
No I get that haha, just wanted to see what people thought
Those prices are terrible.
Trust me, that's the cheapest by far
Yeah have you tried getting a quote from bingle?
Also, try higher excess?
Please, get the comprehensive because if you come back here after a few months with one of those "who is to blame?" thread you will find no empathy. :)
What are you going to do about the excess then that apparently comes when claiming any sort of insurance from any damages done to your car, hmmmm? Fluff it off like it's nothing?
If you up the excess you need to be able to afford to pay it.
I’d rather have $2k sitting in my bank account and earning (or saving mortgage) interest and save a fair bit on my insurance. Of course if I couldn’t budget and lived paycheque to paycheque I’d be considering a lower excess.
of course everyone on a budget would simply forgore insurance altogether…..
Also need to consider the value of the car vs cost of insurance. My car is worth about 5k, comprehensive is about 1k vs $220 for 3rd party. Personally I just take the risk and stick to 3rd party.
"My car is worth about 5k, comprehensive is about 1k"
You're being ripped off.
I'm with Woolworths Insurance and my car is insured for $5k comprehensive, but my premium is $270.
I'm on a limited km discount, but I still think you're being ripped off.
Woolies also give regular 10% shopping discounts to policy holders.
I’m a young male, every provider is 10% either side of 1k. But I agree, I am being ripped off.
"every provider is 10% either side of 1k"
Have you checked out Woolies Insurance?
What's their quote?
The cheapest?
@[Deactivated]: "I don't think Woolies insures under 21?"
If that's true, then it's good for existing policy holders as it would help keep premiums to a minimum.
Likely explains why they're the cheapest.
Never had an accident.
Then statistically you are due for one.
A day without a smash is a day without an MS Paint Diagram.
haha true and I bet that would happen as soon as I get third party
If you have a car thats 8k + i would get comprehensive.
I wouldn't be paying $1500 a year for a $8000 car. A fifth of the cost of the car doesn't make sense. His car is worth over $20K he thinks, at least that's more inline percentage wise. Seems because of his age the premiums are through the roof
Depends if you can afford to lose $8000… if you cant $1500 is cheap to get your $8000 back..
if your rich, go for it.If you trust your own driving then get third party for a cheaper car like that. Idiotic to spend $1500 a year on a what if, to cover $8000. Plus you have to pay excess on top of that in most cases. If you had one big accident every four to five years then it would be the same as buying another car as a replacement instead of paying insurance anyway
Definitely comprehensive for a car of that value. In the last ten years I've been rear-ended twice by drivers with no insurance (both times I was stationary, and both at the same intersection), I've had my car keyed nose to tail in a car park, and last November was caught in a hail storm. None of these have been enough to write off the cars but at least I could get the damage fixed without stress. Doesn't matter how good a driver you may be, you have to allow for the unexpected.
Wow that's really unfortunate. I really wonder how many people don't have insurance.
The last stat I heard from business news at work was about 50% of people in Aus aren't insured.
If you can afford, please get comprehensive insurance rather to get an easy way out now. Life is like chocolate box…get it well prepared before a little thing could and might ruin it.
No, life is like a pubic hair on a toilet seat, every so often you get pissed off. Like someone running into you and taking off.
A few years ago I was so broke I could only afford 3rd party which was over $500 (daughter was on her learner's and son was under 25)
To cut a long story short said son had an accident and wrote my car off (technically his fault).
Wish I could have made the effort to get comprehensive as after the accident I had no car and no money to replace it - hello public transport for 3 months until I could afford a loan.
Go for the comprehensive - always better to be safe than sorry.FYI son was okay, came out with air bag chest which apparently hurts like hell for a few days and a sore back. The driver of the other car was in hospital for about a month with some intense injuries but we heard he was ok in the end. His car was also a write off. Lucky I had at least 3rd party. His car was worth over $20k, mine on the other hand was only worth about $2.5k. My son would still be paying the other drivers insurance company back today if I had no insurance at all.
I'm really sorry to hear that. Thanks for the tip, definitely going comprehensive now.
Thanks for listening :) We are all good now & out of debt *big relief :) & thanks for taking the advice from all of us. It seems like a lot of money to outlay but if something should happen at least you are covered on both fronts (replacing both cars) & not just replacing the others car if you're at fault (I'm hoping it never happens) or chasing an insurance company yourself for damages if the other driver is at fault.
Have a lovely long weekend - if you are lucky enough to be getting one :)
$1500 ia lot to pay for comprehensive. Many insurance companies now offer insurance based on km travelled. If like you, you have low km it can save a heap. I use it and halved my premiums. I use Woolworths, but some others offer km based premiums too.
$1500 ia lot to pay for comprehensive
OP is 23
yep, very high risk category, just about every 23 year old male thinks they are a good driver despite lack of experience and statistics showing otherwise.
Yes I can verify, lots of 23 year olds in suped up exotics, muscles and tuner cars racing down the streets for show…never had a crash….mmmm-hmmm.
"I use Woolworths"
Good for you. So do I.
Have you taken advantage of their 10% shopping discount offers for policyholders yet?
I have at least twice.
I receive the offers, periodically, via email so you probably have to register.
You have it easy. In 2002 I had a $100 beater ‘83 Mazda 626. They wanted $2200 to insure it for 1800. I had a spotless record. Though I did live in the centre of the crater known as Sydney.
$100?! WOW And they wanted $2200 to insure your $100 car?! Hahahahahhahaha
In Victoria, how come unregistered and uninsured cars are allowed on the road? Isn’t there a check and balance by authority?
Respect Dan's auth-o-rity…
Unregistered cars are not - speed cameras pick them up with Automatic Plate Recognition, and the fines is very hefty. Ratbags, of course, simply put false number plates on.
Uninsured cars are legal and common everywhere in Australia.
Where did you get that? My friend got caught up with driving unregistered car only a few hours after the rego expired. Just a few weeks ago.
Your vehicle is relatively not expensive.
With Third Party, you cover the other vehicle, plus, (they don't tell you) but your own vehicle is also covered for about 3k…
Insurance is a "gambol"… its a 50/50 situation… you either hit them or they hit you.
Go Third Party… enquire toward the "extras" such as the 3k to cover your car.
Insurance is a "gambol"… its a 50/50 situation… you either hit them or they hit you.
Also consider situations where the other party is at fault but unidentifiable - hit and run, parked car without a note, etc.
Would personally never have a car worth more than $5k without full comp.
Can you afford to lose your car and pay out of pocket to buy a new one?
Maybe yes if you have a beater worth a couple grand. I would definitely pay for a car worth 20k plus.Depends if you can afford to lose $25k's worth of car or not.
Finally someone who knows how to think!
My general rule of thumb is car value should be 7-10+ times the cost of the comprehensive insurance otherwise I go third party.
Reason: if it is stolen, you crash it (at fault), someone crashes into it while parked and drives away without leaving details or an uninsured person crashes into you, you are covered. Odds of this happening? Reasonably likely once every 10 years…. unless you are just lucky….. But we don't buy insurance for when we are lucky, we buy it for when we are unlucky!
Therefore, if your policy is $1,500 and the car is worth $20K (13x policy cost) i'd definitely insure it. Your insurance cost will likely go down when you are 25 + for a male.
Maybe shop around or look at higher excesses, less extras? Whenever I've considered TPFT it has been hardly any cheaper than comprehensive. But maybe thats because I've only looked at it seriously for cheaper cars.
Even for my dad TPFT is around a half to a third of full comp. His car isn't expensive anymore haha.
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Comprehensive is handy when people drive into you and they have no insurance …