Hi Guys,
First post! Golf 2005. Car insurance.
Agreed value min to max range: $2150- $4000
(Only option is agreed value in this min-max range).
Would you pay:
$323 for min agreed value of $2150? or
$480 for max agreed value of 4000? or
$370 for average/median value of 3075?
Thanks
Min or Max Allowed Agreed Value Car Insurance
L[Deactivated] on 25/08/2022 - 12:17
Comments
Err $3/week
Thanks, I was thinking so, as well. But what about paying the least amount possible as paying for just a risk. I could not figure out how this insurence things work.
Is $2150 coverage even worth it?
By time they deduct your excess you will probably only end up with $1k in the event of a write off.
Depends if you're not at fault, you get the entire amount ;)
Plus insurance is always worth it and even for low valued cars, full comp has its pluses for when the other party doesn't have insurance ;)
How much cheaper is third party crash only?
Market value until the market goes back to normal, then agreed value.
Depends on what will happen to your car after your purchase the insurance…
not sure, but I think whatever the agreed value is, it is then be their final max write off payout value, regardless of what happensw to car after purchase the insurance. Isnt it?
Go with the highest amount possible. It is $157 for $1850 extra payout so if you think you will be involved in an accident, even if it's not your fault, once in the next 10 years you will be in front. A deep scratch would almost be enough for a smash repairer to rack up $4k in damages and the car to be considered a write-off.
While you're still right, at the same time it's $110 for an extra $925 if the midpoint is taken. Still worth doing IMO (8 years instead of 10) but I wonder if there's a sweet spot in there. It's certainly not a linear amount that it changes by.
Oh boy, From low to mid level I pay 6-7 cents to get every $1 back, from mid to up level 8-15 cents to get every 1 dollar back, in the last bracket ($3800-$4000) bracket this increases to 15 cents to get per dollar back. I think sweet spot is around up to $3000 (6 cents) or 3000-3500 (7 cents).
From the insurance companies perspective, that'll be taking into account the excess. For them there's a bigger risk that you crash it (they repair) than an accident where the other person doesn't have insurance (fairly unlikely due to it being illegal, but still good for you to cover).
Because it's always a risk you might have an accident (pobodies nerfect), I'd go up to $3800. Reality is if an accident happens, you're going to want more cash on hand and not less, because buying a car for under $5k at the moment that's not a rusted out bucket of crap is impossible. You could make a spreadsheet and work out the absolute sweet point but when you have to get a new vehicle and it means an extra $800 out of the bank at that time vs having spent $100 a year the past few years you'll wish you had gone the extra.
@freefall101: It's not illegal to not have insurance i think you are confusing CTP with car insurance
@iand: CTP is compulsary third party insurance, in that it covers the damage you to do others (i.e. third parties) without covering yourself.
Thus if OP is in an accident and isn't at fault but the other party doesn't have insurance (i.e. doesn't have CTP), he doesn't pay excess but his insurer still covers the repair bill.
@freefall101: No. No. No. CTP covers injuries, not damage to property.
Please teach yourself the difference between CTP insurance and car insurance.
@freefall101: There are worse ways to have learned that. See the numerous previous forum topics where the OP found out the hard way.
I'd go with max sum insured. Like all insurance, it's a total waste of money right up until you need it, but as others have mentioned, it wouldn't take much to rack up $4k in damage.
I’d go low and take the risk of not actually crashing into anything knowing it might cost me $2k. With the savings outlined I’d have to drive a few years to make up the difference, but I’ve been driving for long enough without a claim for that saving to be worth it. If someone insured hits me I get to negotiate a little anyway.
It all boils down to how much you can afford to lose. If you have enough cash sitting around to go buy a replacement and have a good driving history of not crashing, then it’s worth getting th cheapest insurance you can. If you cannot afford to spend a few thousand on a replacement car at short notice get more insurance.
Thanks for that. I actully am a driver like you with long clean history. Perhaps going for low + windscreen cover just for 20 bucks without any extra excess (wet season roads causing more thrown stone ships than that of past years).
Good call on the windscreen, although I’ve not had a windscreen replaced on a car I’ve been driving ever I think.
Replaced 3 I can think of. Neighbours kid threw a massive rock so they paid. Broke one removing it for rust repairs and just replaced one on a cheap unreg car I bought.
It's a difference of $2 a week between high and low. I would go highest.