Comprehensive Insurance on a Car Worth Only a Few Thousand?

AustriaBargain on 26/11/2023 - 14:41

I've always had comprehensive on my 2007 Rav4 but it's getting on in years. It's got like 280,000km on it, almost enough to drive around the world seven times. Been getting it serviced (and it was itself an ex fleet vehicle for a corporation). Worth maybe $7k, though I may need to pay a bit more for a similar vehicle I'm happy with to replace it. Not sure it makes sense to replace a car with that many k's on it with another car with that many k's on it…

If it were totalled I really wouldn't want to stump up that much money to replace it. Rav4 even with 200k on it and 15 years old seems to carry a premium compared to most other brands of car. I probably would want another Rav4, kinda nice sitting a tiny bit above other sedan drivers.

Anyway does it make sense to keep paying for comprehensive insurance? I'd appreciate having a loan car if it were ever damaged too, trying to keep car costs as low as possible really, and keep car risk low too. A moment's inattention is all it takes…

Automotive Car Insurance Insurance

Comments

  • mbck on 26/11/2023 - 14:53
    +1

    Just use ozbargain insurance. Draw an mspaint and it's all good.

  • Mikefr on 26/11/2023 - 15:04

    Can you afford to payout IF there was an accident, and you weren’t insured is what you should ask yourself.

    • mskeggs on 26/11/2023 - 15:07

      Or are you asset poor and of limited means so the pursuing insurer has nothing to garnish?

      • bargaino on 26/11/2023 - 16:35
        +2

        He is asking about comprehensive vs TPPD-only.

        Last time i got insurance, I got quotes for both, and it was not that much more for comprehensive in my case, in WA. So WTH.
        But in the past, the difference was a lot more. Have insurers changed the way they settle between companies?

      • AustriaBargain on 26/11/2023 - 17:55

        I am both.

      • billadm on 26/11/2023 - 21:36

        the pursuing insurer has nothing to garnish

        That is a serious issue when someone on Centrelink and without insurance crashes in your car.

  • Euphemistic on 26/11/2023 - 15:04
    +7

    It comes down to your risk appetite. If you can afford to be without your car for weeks while it’s fixed or be screwed around by an uninsured driver or driver who won’t provide details then third party property might be for you. Third party won’t help you repair your own car if you cause a crash and won’t help if another at fault driver won’t cough up. Some policies will pay out up to $5k if an uninsured driver hits your car, but they may not do this if the other party is insured and won’t make a claim.

    If you cannot live without your car, that is you can’t get to work without it or must look after a family member daily etc, then you need to have insurance that will provide a quick resolution after a crash, be that quick payment or hire car.

    At $7k value I would be seriously considering trying to save by going third party, but I’d want the TPP policy to be a fair bit cheaper. I know I can survive without my car for a few weeks fairly easily.

  • mskeggs on 26/11/2023 - 15:06
    +3

    Comprehensive isn’t that much more than 3rd party property for an old car, and the benefit of just calling an insurer and getting them to deal with any hassles if I end up in an OzBargain insurance thread is worth it to me.

    If you are younger and it is a bigger step up I can understand, but can you afford to replace your car with no insurance pay out if it gets smashed?

    • RotundPolarBear on 26/11/2023 - 19:22

      Yeah, I noticed the same thing when comparing the prices between comp and third party on my old car. Very little difference.

    • billadm on 26/11/2023 - 21:45

      end up in an OzBargain insurance thread

      The main problem is that even a 3rd party insurance has become too expensive, nearly $600 for a $4,000 car that I could probably only sell for $2,000.
      On top of that we pay theft stamp duty plus GST plus $500-600 out of pocket for a claim also good luck with their misleading T&C.
      But something is not clear to me is that we pay road insurance every time that we renew the vehicle registration, tax, stamp duty etc. etc. and we must renew every year.
      So that is the reason why too many people drive without insurance.

      • Euphemistic on 26/11/2023 - 22:03

        The compulsory insurance you pay every year with rego is to pay for people that are injured on a crash. It is so that innocent victims can be given medical treatment paid for by the insurance rather than having to chase after someone who may not have the means to pay.

  • bobbified on 26/11/2023 - 15:20
    +1

    Most third party property damage policies come with $5,000 cover if you can identify the party at-fault and they're not insured. If your car is only worth only $7K, that might be enough for you. But it all depends on how much comprehensive insurance is in comparison to third party only.

    • Euphemistic on 26/11/2023 - 15:32

      That $5k cover may not work if the other party tries to draw things out or won’t make a claim.

      If you’ve only got TPP then you need to be able to live without your car for a while, or purchase a new one from savings to get by in case the worst happens.

      • bobbified on 26/11/2023 - 16:32

        It's a risk vs saving thing. Depends whether OP thinks it's worth it for the saving on the premiums.

        • Euphemistic on 26/11/2023 - 17:26

          Absolutely. Recently considered TPP for our kid’s car. The price difference wasn’t worth the additional risk so we stayed with comprehensive.

        • AustriaBargain on 26/11/2023 - 17:56

          Also I know my car is at least running okay. And my mechanic knows it well by now. If I was given another 17 year old Rav4 with 280,000km on it for replacement who knows what is going on with the engine.

      • billadm on 26/11/2023 - 21:47

        if the other party tries to draw things out or won’t make a claim

        that is why you pay the insurance, they have the means to contact the other party and to demand compensation.

        • Euphemistic on 26/11/2023 - 22:00

          They won’t do that if you only have TPP.

          • billadm on 26/11/2023 - 22:26

            @Euphemistic: So that is another good reason why I stopped giving my money to greedy corporations and thieves tax offices.

  • Brick50 on 26/11/2023 - 15:48

    What is the annual cost of your current policy? Personally I have third party on any cars <8-10k and full comp on anything 10k+

    TPP is only $250 and full comp is $1500ish

    • AustriaBargain on 26/11/2023 - 16:54

      It just went up to like $1300 a year. Probably time to shop around. Was under $1000 last year. I did the insurance meerkat thing and it had a lot of options under $1000. And years ago it was even less than that. Just keeps creeping up.

      • Brick50 on 26/11/2023 - 18:15

        I start a new policy each year, not worth renewing a policy make sure to shop around.
        I wouldn't be paying $1300 a year for an older car like that, I would run the risk and have TPP if it was me and you don't have a history of collisions

      • angywoo on 26/11/2023 - 19:23

        Mine is now $1644 for a 2007. Not happy to say the least.

        Looking to buy a newer car now.

        • AustriaBargain on 26/11/2023 - 19:41

          What's your excess?

        • billadm on 26/11/2023 - 21:51

          Mine ~$600 for a $4,000 thing on 4 wheels that I could probably only sell for $2,000.
          Excess $600, no option to change it.
          I decided no more 3rd party insurance so I don't waste money for stamp duty, GST, insurance etc. etc.

  • naruto128 on 26/11/2023 - 17:04
    +1

    I used to have TPPD cover until I got rear-ended. The other party has insurance but he did not want to lodge a claim. I got his details but my insurer says since I have only TPPD they do not get involved in chasing the other insurer and its all on me including taking any civil action. So lesson learnt.

    • AustriaBargain on 26/11/2023 - 17:07
      +1

      Yes this is the kind of thing I want to avoid. Ending up spending dozens of hundreds of hours chasing up something. I only have so much mental energy to give and it might cut into my OZB time.

  • slknv on 26/11/2023 - 17:38

    At minimum get third party property insurance if not going comprehensive. Do NOT drive uninsured. Personally on an old cheap car I'd only get third party property insurance. I've got several cars, two of them only third party and the rest are comprehensive.

  • epicttiimm on 26/11/2023 - 18:35

    TPP at the very minimum. Your car might be worth little but if you hit a high investment AMG or a Tesla Camry good luck paying for those repairs out of pocket.

  • RotundPolarBear on 26/11/2023 - 19:20

    I have a similar aged car, 2007, with similar kms, 250k. Comparing third party and comprehensive, there was very little difference in price, strangely enough. Barely any saving, so just continued with comp coverage.

    • angywoo on 26/11/2023 - 19:24

      how much are they charging you?

      • RotundPolarBear on 26/11/2023 - 19:30

        $230 p/year on Woolworths. With Drive Less Pay Less.

        • angywoo on 26/11/2023 - 19:33

          might check it out thanks

    • Euphemistic on 26/11/2023 - 19:35

      I guess that’s down to the tiny amount of paying you out for an old car vs damages only isn’t a lot which is why the premiums are similar. Damages could be 10 times the value of your car.

  • CascadeHush on 27/11/2023 - 07:58

    I have only had TPPD for years. Can’t afford Comprehensive. Car is about 18 years old and has had a good run. Losing it would be sad but I’d just learn to live without a car. Or hopefully it would be the other drivers fault and they are fully covered. If I had been able to save the money I’ve saved on not getting comprehensive, it probably adds up to about half what the car is worth.

  • ForkSnorter on 27/11/2023 - 08:15

    So far I've saved about $6000 by using third party only.Comprehensive is not worth it if you're a careful driver and car is with less than $10k.

    • kerfuffle on 27/11/2023 - 09:22
      +1

      The problem is that other people aren’t careful drivers, hence comprehensive, so you don’t have to waste your time and effort chasing up the other party.

  • pdperth on 27/11/2023 - 08:32

    If you get your third party with fire and theft the insurance company will represent you in a not at fault claim against another party. Not sure why they do this but the difference is pretty small and worth it i think.

    • Euphemistic on 27/11/2023 - 10:52

      Not all of them will help. Some will cover uninsured driver up to around $5k. Some will flatly refuse to help if the other driver is insured but won’t make a claim (there’s threads on here).

  • 82norm on 27/11/2023 - 08:36

    The minute you take out on TPPI, you’re going to have an accident. It’s just Murphy’s law.

  • jonkvh on 27/11/2023 - 08:39

    Just changed over to third party insurance on (their value) a 4 grand Hilux. Those saying there isn't much difference between TPP & Comprehensive, need to shop around. It was 70% cheaper for TPP.

    • cloudy on 28/11/2023 - 10:29

      And how much is your TPP currently?

      • jonkvh on 28/11/2023 - 10:44

        $27/month.

        • cloudy on 28/11/2023 - 11:02

          Not bad…

  • lew380 on 27/11/2023 - 09:02

    You will almost always lose with insurance, it's a gamble usually going against you (house wins, that's not you). If the car is quite valuable then it's probably worth the extra cost, but if you have savings and could afford a similar car if the worst did happen, comprehensive insurance is just a bad financial decision.

  • billy72 on 27/11/2023 - 09:53

    It all depends on your circumstances. If you have to drive a lot every day on routes with crowded trucks, then definitely yes. If you work from home 4 days a week, then no.

  • pandadude on 27/11/2023 - 10:16

    Depends on price. You need to compare third party to comprehensive.

    If you have third party insurance you still need to pay excess if you have an accident to claim. Might as well claim for your own vehicle at the same time with comprehensive.

    Also if someone else crashes into your vehicle with comprehensive or third party fire you have a set value for your vehicle. Sometimes insurance company try and low ball you on the pay out.

    Also if your using third party and some else crashes into your vehicle you can not claim against them until they pay their excess. Some people take forever to do this. If you use your own insurance company the matter is sorted out. You may need to pay excess but if your not found at fault you get this refunded. They then send the bill to the other guy.

  • Brick Tamland on 28/11/2023 - 13:29
    +1

    I think it comes down to your premium and the amount you can cover with insurance. I recently had an old Corolla with comp insurance for $600 per year but it was only for a max insurance value of $3,500. I downgraded to third party fire and theft which was about a $350 premium.

    I figured that the extra amount in premiums wasnt worth the small amount of insurable value.

    My view on insurance is if something was to occur would the loss of the vehicle and the costs cause me substantial hardship, if yes, then I get the comp insurance. So the loss of a $3,500 car is bad but it's not something that would have a huge crippling impact as I could just use my saving to buy another one. Therefore third party was the way to go.

Login or Join to leave a comment
Login Join