Comprehensive is better but $$$…
Which is a better option and why?
Insurance: Third Party w/ Fire and Theft Vs Comprehensive
BargainHunterJohnnyB on 09/10/2023 - 21:08
Comments
Can you afford to replace your own car?
I use comprehensive, in case I hit an expensive car.
third party covers the other car though…
Oops, I thought he was talking the Compulsory Third Party :(
I thought he was talking the Compulsory Third Party
CTP doesn't cover the car, only the humans in the car
Comprehensive insurance is $3500 from NRMA for a 15k car….
Did you have your car fitted with some kind of incendiary device?
I’d shop around.
Shop around. I've found nrma to be more expensive than others.
Note that compressive also covers you if a jerk damages your car and won't pay, can be handy if your car is worth more than $5k.
yeah this makes no sense. I pay $2K for comprehensive for a much more expensive car. Shop around
yeah this makes no sense
Rates have jumped around wildly since Covid. Not only inflation but Insurers now have access to your driving record so any points push up the premiums.
They really don't want your business. What did you do?
That’s way too much. Are you a male and under 25 or something? Mine’s $2K but my car is worth three times more.
Your postcode also affects your premiums.
No, I'm late 20s.
I've checked with aami and the insurance is $1500ish
First time taking out insurance in your name? That's another reason why mine costs so much (along with my postcode)
@kerfuffle: So that's why some people never have insurance, eh? I always wondered how come people who were lucky to not get into an accident get cover after a while, and you see them making posts here after they get into an accident without insurance. That explains it. Didn't know people who haven't had insurance before pay more when they apply for one for the first time.
@AussieDaddy: I leeched off my dad's good name for insurance in the past. But yeah time I stopped doing that since the last one was a T-Bone (not at fault) and they kept calling him to discuss despite my being the driver
Third Party Property (TPP) will be the cheapest, with extra premium for optional fire & theft. But this doesn't cover damage to your vehicle if you're at-fault.
Always go comprehensive for me even if it's much more expensive, I've been burned in the past with Third Party only, I rather have the insurer deal with everything than me chasing up the at fault party.
Comprehensive covers your own vehicle. If you can afford to replace your own vehicleat short notice or live without it while you chase someone for repair costs MAYBE you only need TPP.
If you cannot live (work) without your car and cannot afford to replace it at short notice you cannot afford not to have comprehensive.
Other people may not be insured, or refuse to lodge a claim with their insurer. You might get hit and run. There’s a myriad of instances where your car is damaged and you don’t get any assistance in getting it repaired.
Go with Bingle and get comprehensive.
How much do you pay?
1000 for a year of comprehensive insurance.
I had to claim this year too, and while they have no call centers, submitting the online claim for was fairly painless.True - it's the same price as AAMI for me, heck even slightly more expensive. :/
@BargainHunterJohnnyB: Marketed to younger drivers, with attractively low premiums. Did you get a quote?
@sumyungguy: If the premiums are low for young drivers make sure you read the PDS thoroughly to understand what isn’t covered.
@Euphemistic: The psychology of pricing makes consumers suspicious of the cheapest so they'll usually select mid-tier, exactly what the insurance sector is playing
@sumyungguy: They play the numbers game. If it’s cheaper with rollin or any other insurer then their payout figures are lower.that may mean denying claims, making you do more work for a claim (eg take it to a repairer far from home because they only have one in your city), or making you pay extra for additional cover (eg if car is not standard, or for extra drivers).
As an example Budget direct will not insure any drivers that live at your home address and are not listed as a driver - even if only infrequently. They want extra premiums for learners as well while others will cover learners as long as the instructor is covered.
@Euphemistic: Consider how many insurers have contracts with Capital S.M.A.R.T Repairs. We're not all paying the same premium but probably getting the same thing. NBN retailing is another example of tiered pricing, perceived value, marketing strategy 101.
@sumyungguy: That makes sense, I'm under 25 so that's probably why my quote was so low. This was in Feb this year.
NRMA vs AAMI vs Budget Direct?
NRMA in my opinion. Just look up Budget Direct on here if you want horror stories.
What about AAMI? NRMA is asking twice as much as AAMI
Well I can only comment on what I have experience with. DYOR for AAMI.
@kerfuffle: Plus read the PDS for your policy. Cheaper insurers limiting who can drive your car and be covered is a big difference.
@Euphemistic: Yep. NRMA is a positive in this aspect as they'll cover anyone who drives your car (with your permission).
@kerfuffle: And as a contrast Budget direct will not insure anyone living at your address who is not listed - including learners. NRMA will cover any learner with no increase in premium while budget direct wanted and extra $50 on the policy I had (but no longer do)
Also worth noting - comprehensive in my experience has made claiming way easier. For example, a friend of mine had a neighbour reverse into him while waiting to turn into the main road. Young and dumb neighbour - nonetheless, he (at first) refused to give out details, and then once he did - he said he would make a claim with his insurance and give the claim details. Never happened, and numerous follow ups lead to nowhere (I assume the neighbour had no insurance). The friend had comprehensive and I told him to let their insurance deal with it.
The process was painless and easy - literally took 10-15 mins over the phone and then once it was approved, my friend took it to a panel beater, got it fixed and it was all sorted. I never know what happened of the situation, but having comprehensive made it easier for his insurer to chase up the neighbour and sort it all out.
Yes you pay more, but in times (like the above), it pays itself as you don't have to deal with it. I know some third party insurers do assist in scenarios (like the above), but ultimately, they don't have to as it's the other parties fault (and not yours). Third party will get involved when it's your fault.
For me at least, if the car I have is relatively old (and practically worthless), I go for third party (and I did this when I got my first car), however if my car has some value to it, I'd go for comprehensive.
Plus one for comprehensive. Recently had someone reverse into my car. He wanted to go outside insurance and get ‘his repairer’ to fix my car. After a bit of to and fro his repair cost came to a lot less than I was comfortable with. (500 vs 1400). I rang his repairer who was also not confident of getting a 100% job based on some extra photos I sent. When he got a bit stroppy about the cost for the repair I suggested we both use insurance to which he declined because ‘extra costs’.
Rang my insurer and made a claim. Simple, job done.
It depends on the car and how much you can afford to lose.
My 22 & 25 yo daughters have shared a 2004 Accord Euro since 2016. It was comprehensively insured in my name for $1200/yr and then got caught in 2 hailstorms within a month. We didn't bother claiming as they would have written it off and we wanted to keep the car. It's now Third Party Property in their name for ~$600/yr (it's complicated). Full comp would be $2300. If they write it off then we go car shopping with the money "saved"
My partners 2000 Mazda 323 has been full comp for 23 years (sold on the weekend for $2500 which was a great price). It's actually cheaper for her to get Comprehensive insurance than TPP.
My 4WD is would cost ~$35k-$40k to replace, so It only makes sense to comprehensively insure it for $1400/yr including $30k in recovery cover.
I think it was Renee Rivkin that said "Insurance isn't for rich people, it's for poor people"
What is recovery cover?
Getting a broken 4wd out of a location where it probably shouldn’t have gone.
Its for when you are in the middle of nowhere and need to be pulled out. I wouldn't describe it as "shouldn't have gone" there.
It gave me peace of mind when I was doing the half lap last year.There are dozens of vehicles out in remote parts of Australia that are left where they are as cost of recovery exceeds value of vehicle.
Third party only covers others. Comprehensive covers you and others.
Read the inclusions and exclusions of both and decide what's best for your specific case.