Car Insurance Suggestion for a 16 YO Car

robertwt7 on 18/11/2024 - 10:08
Last edited 18/11/2024 - 10:10

I need a suggestion for car insurance as I'm due for renewal right now. Usually I change provider every year due to the price increase at the renewal time. However at this point I'm confused if I should have insurance at all?

I bought this car initially for $7k (2008 Accord), for the past 6 years i've been paying around $100 a month for the comprehensive insurance. The last 2 years i've been paying extra $100 for the road side assistance (from budget direct and AAMI prior). At this point the cost of my insurance throughout the lifetime of the car already exceeds the price of the car!

Does any of you insure your old car? if so, is $100 per month too much? Budget direct is renewing mine right now for $125 per month so I'm looking around as well if there's any reasonable insurance for this old car.

Automotive Car Insurance Insurance

Comments

  • mapax on 18/11/2024 - 10:11
    +17

    if I should have insurance at all?

    Can you afford to hit a Porsche?

    • robertwt7 on 18/11/2024 - 10:12
      +4

      so your suggestion is to get only third party insurance?

      • MrThing on 18/11/2024 - 11:09
        +15

        yes

        if the 7k car is insignificant to you then comp is pointless

        but hitting a super expensive car or driven into someone's lounge room. You will definitely want 3rd party property insurance

      • donga100 on 18/11/2024 - 12:04
        +4

        Not Compulsory Third Party (Transport Accident Charge in Victoria), that doesn't cover damage to vehicles/property. You need to purchase Third Party Property (TPP) but it might not be a lot cheaper than comprehensive anyway.

      • emblurr on 20/11/2024 - 11:31

        I just have a third party property insurance on mine <$10k car. If I write off my car, so be it. If i write off another car at least i'm covered. Insurance is about $300 a year.

        • dojomojo on 20/11/2024 - 12:43
          +3

          Note: if you only have TTP and someone hits your car, then your insurance company usually will not chase up the other party for you - you'll have to send demand letters, etc on your own.

          • emblurr on 20/11/2024 - 12:50
            -2

            @dojomojo: oh really. Sounds like something insurance should do.

            • ricadam on 20/11/2024 - 13:15
              +3

              @emblurr: Why, you're not paying them for that.

      • MS Paint on 19/11/2024 - 18:06
        +9

        How does your answer even remotely relate to what mapax said? FFS. HeWhoKnobs strikes again.

  • jv on 18/11/2024 - 10:11
    +5

    paying around $100 a month for the comprehensive insurance.

    That's a lot… I'm paying under $500 per year

    • robertwt7 on 18/11/2024 - 10:12

      are you getting comprehensive or just third party?

      • jv on 18/11/2024 - 10:22
        -1

        full comprehensive

        • robertwt7 on 18/11/2024 - 10:32

          from what provider? I can never get it below $100 per month in each quotes i don't know why

          • jv on 18/11/2024 - 10:50
            -1

            @robertwt7: AAMI

            • Baysew on 18/11/2024 - 12:47
              +15

              @jv: You're lucky.

          • JDMcarfan on 18/11/2024 - 10:54
            +1

            @robertwt7: if you live in metro melb or sydney and live in a more ethnic/edgy area then expect insurance premiums to be considerably higher (e.g. >$1000 p.a for anyone who is <50 and without a perfect record).
            Just get 3rd party for a car like that. Can you afford a new car without a payout from insurance if you have an at fault crash?
            If yes, then its a no brainer for a relative shitbox (no offence, all my old cars have been in that boat). I've easily bought myself a free shitbox with the premiums i've saved with 3rd party. If you have a good insurer, then 3rd party will also include accident coverage managed by insurnace if clearly not at fault, so youre not chasing.

            • robertwt7 on 19/11/2024 - 15:41

              @JDMcarfan: yeah you're right. i'm in metro melb, under 50, but have perfect record though. I ended up going with AAMI, the third party + theft cost $73 per month, comprehensive (2.3k excess) + roadside cost $86 so I ended up taking that. huge cut from $120 per month but still a lot tbh after looking at what everyone here pays!

              • JDMcarfan on 19/11/2024 - 15:44

                @robertwt7: yeah fair enough i mean i have a perfect record too and in metro syd and likewise have never gotten a renewal under $1000 for any of my last 7 cars (im under 30, but have 10 years clear driving now - incl points). Meanwhile dad has paid like $700 annually until recently - now $1200 p/a.

              • JDMcarfan on 19/11/2024 - 15:45

                @robertwt7: 3party for 73 a month seems pricey tbh. I paid $500 p/a as a 18-25 year old (got a couple years at $120 due to covid promos).

        • charlierg on 18/11/2024 - 13:23

          How old are you?

        • HeWhoKnows on 19/11/2024 - 13:45

          including roadside assistance

          • jv on 19/11/2024 - 22:15

            @HeWhoKnows: I just checked, this year it was up to $535 including road side assistance and windscreen & window glass cover.

            • SuperLate on 19/11/2024 - 23:56

              @jv: What did you insure, an electric scooter ? $535 for a comprehensive cover + roadside assistance, windscreen and window glass cover is insane ! Don't tell me you've got hire car option as well.

              • jv on 20/11/2024 - 00:02

                @SuperLate:

                What did you insure, an electric scooter ?

                A Hyundai sedan.

              • jv on 20/11/2024 - 00:03

                @SuperLate:

                Don't tell me you've got hire car option as well.

                no…

                Excess is $750 though.

  • Hybroid on 18/11/2024 - 10:17
    +2

    I self-insure, with third party coverage, and have 'saved' well over $20,000+ on comprehensive insurance costs. It has worked out so far, but very well could not have too.

    Everyone's risk appetite and usage differs so it's hard to get other people's views to form your own. If I used it daily to commute, I probably would have full cover though.

    • King Tightarse on 20/11/2024 - 15:24

      Do you actually put the annual savings in a separate account?

    • OzzyOzbourne on 20/11/2024 - 15:32

      I've heard large companies do that, but they have the $millions saved just in case.
      $20k won't go far, hopefully you have a house you could sell too.

      • Antikythera on 20/11/2024 - 17:09

        dad had a beef farm.
        instead of insurance each year he bought lambs, fed them, and sold sheep.
        over a lifetime he was way out in front.

      • Hybroid on 20/11/2024 - 17:44

        I can replace the vehicle tomorrow cash buy if really had to. Else wouldn’t risk it in first place.

  • Boioioioi on 18/11/2024 - 10:20
    +5

    Definitely third party at a minimum. Stupid to have no insurance, can you afford the bill if you hit a Ferrari or crash into a building?

    Personally I'd get full comp myself, its a pain in the butt if someone hits you and you do not have full comp insurance to hunt them down. You are at the other persons mercy.

    Can you afford ~$10k for a new car and the costs around it if you lose this car? And would you rather pay that than insurance? If so do third party. If not get full comp.

    • kerfuffle on 18/11/2024 - 10:23
      +3

      Can you afford ~$10k for a new car and the costs around it if you lose this car? And would you rather pay that than insurance? If so do third party. If not get full comp.

      Also this question: can you bothered chasing up people if someone drives into you? If yes, get third party property. If no, then stick to comprehensive.

      • Seraphin7 on 18/11/2024 - 12:28
        +3

        Also this question: can you bothered chasing up people if someone drives into you? If yes, get third party property. If no, then stick to comprehensive.

        This is a question that gets overlooked so often in these forums (and elsewhere). Maybe people have far more time available to them than I do, not to mention inclination, to chase up randoms for money who it seems as often as not have no insurance themselves or otherwise want to give you the run around.

        I know all the arguments on premiums going up, etc., but the fact that I can just pass all the details over to my insurer and have them chase up everything is worth far more to me than the time potentially lost in all that hoo haa.

        • Boioioioi on 18/11/2024 - 15:39
          +4

          100%.

          Something else people do not mention, if you are in a not at fault accident and give the other persons details, your insurance will handle it all - and your premiums will not go up. If they do, churn to another provider. Insurers only care about at fault accidents.

          Additionally, if you are in a not at fault accident with someone who has no insurance and can't afford to fix your car, you are out of luck. They might get into a payment plan or something if you hire a lawyer and sue them, you'll get like $100 a month.

      • Noblejoker on 19/11/2024 - 11:10

        Agree with the sentiment - but pointing out that a good Third Party Property Damage cover will include a 'Not At Fault' recovery option
        Our Elders policy covers us for up to $5,000 on our car if someone hits us and we get all their details
        Doesn't cover own fault, or unknown cause, or hit and run without getting details

        • kerfuffle on 19/11/2024 - 14:42

          Isn't that only if it's proven the other party doesn't have insurance? If they're insured but won't file a claim, you're still up the creek without a paddle

  • geekcohen on 18/11/2024 - 10:31
    +2

    The issue with old cars and comprehensive insurance is getting parts. The older the car, it is often harder to get parts and costs more for those parts. Your insurance as almost the same as my 2.5 year old Ford Ranger valued at $60k.

    My wife and I had a little run about Suzuki Belano 2000, cost $25 p/m for 3rd party. Only used for driving to the Station and around town prior to kids. Its gone now, but covered us. Wasn't worth much and never had an issue, but covered us if we ever hit anyone. It was a 3rd car, so if we lost it in an accident, we had our main cars that we could've used.

    But others have made good points about whether you can afford to replace the car if you hit someone and only have 3rd party. Or if someone hits you, that you have to chase others.

    But overall do not run with no insurance at all!!!!

  • sumyungguy on 18/11/2024 - 10:41
    +1

    Premium varies according to make, model, vehicle age, driver age, suburb you live, daytime parking location, security of overnight storage, km travelled, peak hour travel, among other variables. My 2008 car renewed full comprehensive in July for $413 (Aust Post/QBE, annual) but your circumstances are no doubt wholly different to mine.

    • robertwt7 on 18/11/2024 - 10:47
      +1

      what that is crazy. I just got a quote for $1855 a year for comprehensive, $622 a year for third party. this is with auspost, car driven less than 10k, no past claims or demerits. parked inside garage. how is it that much of a difference??

      • sumyungguy on 18/11/2024 - 10:55

        I copped a massive increase; my 2023 renewal was $235.75

      • kerfuffle on 18/11/2024 - 11:16
        +1

        Are you under 30 or something and live in a crappy area? $1855 for comp insurance for a 2008 Accord is wild

        • robertwt7 on 19/11/2024 - 15:39

          Mid 30s and live in metro melb. not sure if it's a crappy area? my insurance used to be the same in Footscray though

  • apple2016 on 18/11/2024 - 10:44
    +1

    Increase your basic excess to the max (say about $2k). your premiums will come down drastically.
    Comprehensive insurance for old cars are expensive as parts are usually very expensive or difficult to source unless its a very common model like toyota camry etc.

    • geekcohen on 18/11/2024 - 10:47
      +3

      Increase your basic excess to the max (say about $2k). your premiums will come down drastically.

      I did that and was like, "if I hit someone, it is my own fault". Never did I expect to hit a Kangaroo which was my not my fault and then have to cough up the $2k for my excess.

      • zathras on 18/11/2024 - 12:58

        Bugger! You couldn't avoid that. Thanks for the warning. Bloody Kamikaze Kangaroos seem to be everywhere these days.
        Ten or twenty years ago I hardly saw any on the road, seems like there are a dozen dead ones by the highway everyday day now.
        I don't think I'll be game to risk a massive excess anymore.

        • geekcohen on 18/11/2024 - 13:49

          Yeah, exactly and I have driven that road countless times over the last 10 years with no issues.

          Yeah, I've redone my policy to include a hire car for any accident and reduced my excess. Pay a bit more per month, but I had my sisters buzz box for 3 months which got me and the kids around, but it wasn't ideal.

        • Hangryuman on 20/11/2024 - 07:39
          +1

          I grew up in a rural area and learned that animals on the road occur mainly around dusk or after dark in winter for the few hours when a bitumen road remains warmer than the surrounding air so animals are attracted to its warmth.

          Avoid driving in the country around dusk or after dark and you're unlikely to ever hit a wombat or kangaroo.

          • geekcohen on 20/11/2024 - 13:00

            @Hangryuman:

            Avoid driving in the country around dusk or after dark and you're unlikely to ever hit a wombat or kangaroo.

            Its a bit hard when you live in a country area.

          • King Tightarse on 20/11/2024 - 15:26

            @Hangryuman: Also dawn - lots of kangas at dawn

      • Nugs on 19/11/2024 - 19:21
        +1

        Slomo sound, wow
        .

    • robertwt7 on 18/11/2024 - 10:51
      +1

      oh this actually makes sense though. at least I'm paying much less now, with this I'm quoted $867 a year from AAMI

      still thinking either to go with this or just third party

  • Brucet on 18/11/2024 - 11:39

    I will only pay for third party insurance and roadside assistance .

  • bazingaa on 18/11/2024 - 12:09

    I paid ~$450 for my 2004 pulsar and ~$1100 for IX35 annually with AAMI including road side etc. I think AAMI has the best value-to-cost ratio.

  • netjock on 18/11/2024 - 13:15

    At this point the cost of my insurance throughout the lifetime of the car already exceeds the price of the car!

    Not about the price of your car but what you might hit. As people all buy more expensive cars even if you drive a $500 it will still cost you a fair bit to insure.

    I have a 20yo car that is back up car (does less than 5000kms per year) on limited km policy paying about $600pa (Huddle).

    If I was go normal comprehensive I'd be paying $1500 and the lady at Shannons was joking that your car would be write off if it is ever in an accident.

    • GordonD on 18/11/2024 - 16:36

      I have a 20yo car that is back up car (does less than 5000kms per year) on limited km policy paying about $600pa (Huddle).

      I'm similar. Mine went up from $229 last year to $246 this year.

      • netjock on 19/11/2024 - 09:38

        Who are you with?

  • slknv on 18/11/2024 - 16:25
    +2

    One of my cars is 20 years old, paid $7000 for it and insurers all wanted $1500 annual for comprehensive insurance. I just put third party insurance on it - I won't shed any tears if the car itself gets written off. And all people should note the huge difference between compulsory third party insurance (I think that's the term usually thrown around in NSW, which in Vic would be called TAC and wrapped up in your rego renewal) vs third party property insurance.

    • kerfuffle on 18/11/2024 - 17:43

      Yep, Compulsory Third Party aka CTP aka green slip in NSW (which unlike VIC you buy separate to your rego)

  • SYLTB on 18/11/2024 - 18:19

    It seems the OP is a very risky driver i.e. age, suburb, driving/accident history etc. You should get TPP, or drive less pay less (everyday insurance). Do not pay never ever comprehensive for any car after its price half time (usually 3-5 years, depends on the brand, make). just like chemistry elements' half-life.

    • Euphemistic on 18/11/2024 - 18:30
      +1

      Dropping to TPP should be contingent on wether you can live without the car, or can afford to replace it at short notice.

      If you cannot afford to be without a car, you pretry much cant afford to be without comprehensive.

  • Chris Topher on 18/11/2024 - 18:59

    Shop around. I have my '98 Ford Wagon fully comprehensive insurance for $200 annually.

    • Euphemistic on 18/11/2024 - 19:09
      +1

      Its very hard to compare policies. The drivers age and location make the biggest difference.

    • jhlook on 19/11/2024 - 10:03

      @Chris Topher Who are you insured with?

      • THICKnSLOW on 20/11/2024 - 07:13
        +1

        Sounds like ATallTale Insurance Company

    • smartazz104 on 20/11/2024 - 12:25
      +1

      And the payout if written off is $200 too probably.

  • heytherehoney on 18/11/2024 - 23:19
    +1

    $100/mth is way too much! My comprehensive policy is <$500 p.a. for a 2006 car which is only insured for about $3K (I wouldn't care if it was written off). I considered dropping it down to third party only but I also wanted roadside assistance - in the end it was less than $100 extra to make it comprehensive so I've kept it for the convenience. I'm with AAMI.

  • StingyBritches on 19/11/2024 - 09:26

    OP: what is the payout figure for your $7k car?
    That should also be a consideration on whether you continue with full comp.

    • robertwt7 on 19/11/2024 - 09:34

      currently it's the market price. which I reckon should also be around $7k? I end up going with AAMI for full comprehensive cover with $2.3k excess + roadside assistance. the whole thing cost me $870 annually so not bad

      • Woody982 on 19/11/2024 - 09:45

        Still absolutely terrible price for you car lol.

        My 2015 Golf R that has bigger turbo, intake, exhaust, big brake kit etc etc… is insured for 27k (what i paid for it with mods done) and I only pay about $1300 a year with all mods declared through Enthusiast insurance!

        Youre getting ripped, honestly I'd just go third part if I were in your shoes. Hell I'm tempted to either forgo insurance or just go to third party for the Golf R and my Fat Boy…

        • robertwt7 on 19/11/2024 - 15:38
          -1

          yeah I tried going third party and they offered me $73 per month? haha I'm not sure what else is wrong I tried different variables when requesting quotes. I'm also located at the eastern area of Melbourne so probably it's the suburb?

      • StingyBritches on 19/11/2024 - 10:20

        You may want to confirm that payout price with your insurer. Betcha if you insured it for a ‘fixed’ price it would be even more expensive.

        Looks like you’ve done better with AAMI so… safe driving!

  • Ade99 on 19/11/2024 - 09:46

    It is basically down to risk appetite. Either pay a higher premium up front and have a reasonably safe position in the event of an accident or else skimp on the up front insurance premiums and then pay up big time in the event of a traffic knock….be that your fault or some one else's…

  • tabitha731 on 19/11/2024 - 12:39

    Have U tried Rollin'?

    • Euphemistic on 19/11/2024 - 16:22

      Thatll probably write off the car.

  • 2esc on 19/11/2024 - 17:25

    2001 ford ute insured for agreed $4500 with Racv Comprehensive cost $482. Third party cost would of been $410.

    Note we have 2 other cars with them and house and contents.

  • Nugs on 19/11/2024 - 19:25

    Have you looked at TPPF&T? That's what our Metro has because it wasn't much more than TPP, but much less than comprehensive. Not all insurers offer it though
    .

  • Alexxx on 19/11/2024 - 22:05
    -1

    Get the highest excess you can select and see what you can find for full comprehensive.

  • fredk1000 on 19/11/2024 - 22:55

    A long while ago, I had an old car, it was probably only worth $1000 back them comprehensive per year was about the same price, so makes no financial sense. I got only third party for many years, I agree with the comment above. If someone hits you and you are not at fault it was a pain in the ass, with comprehensive the the insurance company sorted it all out, without it there is a lot of running around, when the other party later changes their mind it was not their fault, it's all a pain but being the cost of the car was so long I did not pursue them and just forgot about it being so minor damage.
    But you must have minimum third party property, if you are at fault it would/could bankrupt you. Back then it was just if I recall it was $150-200 per year, it would be much higher now. I am getting to the point of my current car I may do the same again, the comprehensive premiums are pretty high now.

  • Hangryuman on 20/11/2024 - 07:46

    yeah - get Third Party Property Damage cover with the maximum excess you can afford to pay if you hit a Porsche and it was deemed your fault

    google 'discount car insurance' - browse a number of discount insurers like Budget Direct - and compare the premiums for different maximum excess figures to see how a higher excess reduces your premium

    I've read that insurers may see high excess choice as good drivers unlikely to claim, and people who choose the lowest excess as more likely indicating that they are more likely risky drivers - in which case they might even study those cases more carefully before paying out, or even reject your claim. Dunno - just maybe.

  • TimSubaru on 20/11/2024 - 10:16

    Depending on the value of a car/ what you could afford if the car was written off?
    Anything under $10k or $5k I get third partyand or add fire thief depending on $.

    Full comprehensive is a waste of $100 mpnth your paying unless your a terrible driver?
    Some people say Insurance company insured my car $20k it must be worth it. These people forget higher Insured value cost more $.
    Collecting insurance on this higher value is a gamble and very few peopke get into major accidents compared to people who get into minor or no accidents.

  • yamahamoto on 20/11/2024 - 12:25

    I didn’t renew my car insurance back in 2020 during Covid as the car wasn’t being used as much. Pushed it to late last year before I signed up again. I notice they ask if you have been insured previously and will be asked for renewal letter from previous insurer. I have to select that I just bought this car.

  • ayum1 on 20/11/2024 - 12:37

    I had a base model 2005 Honda dc5 integra for 4 years prior with no insurance for two reasons.
    1. For just third-party coverage, they wanted $1900/pa, let alone considering comprehensive coverage..
    2. I was confident in my driving ability to not get into accidents.
    3. Couldn't justify paying my car's value for 3 years in insurance on third party.

    That car ended up getting into an accident quite minor, side swiped at 10kph, however the car was declared a total loss.
    In the moment it was honestly quite stressful as has to rely on someone else's insurance to come through.

    In saying that I picked up a 99 S2000 this year and put insurance on it immediately. Paying about $2060 a year for full comprehensive @ NRMA for an agreed value of 45k. The peace of mind is really nice to have.

    At the end of the day I can understand not wanting to pay insurance on a car with low value as in your case you do end up paying more than what the car is even worth, but an accident is called an accident for a reason and you could always be the one at fault no matter how good you think you are. Anyways hope you manage to get cheaper insurance.. I think 2k is quite high for an accord.

  • harrywwc on 20/11/2024 - 12:47
    +1

    a reasonable compromise between "full comprehensive" and "third-party property only" is the mid-ground of "third-party property, fire and theft" which means you're covered for other people's cars and stuff that you hit, and you get coverage if your car is stolen (theft) or burned out by fire (often after theft).

    prices vary across companies, of course. but you need to have at least third-party - trust me, I know this from sad experience many years back now :(

  • BartholemewH on 20/11/2024 - 13:21

    Forget hitting Porsche etc. A Ranger Wildtrak with bars and lights is approx. 90k. If you can handle that without blinking then self insure.

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