Comprehensive or 3rd party car insuance

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xlinknz

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#304329 24-Apr-2023 18:25

Our current car is worth 4K (we'll replace with an EV within 12 months)

Comprehensive insurance is $325 with a $750 excess, 3rd party half that. We can afford $4K

Is there a rule of thumb geekzone members with low value cars when there is no point in getting comprehensive insurance?

k1w1k1d

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#3067749 24-Apr-2023 18:51

~$160 for 3rd party cover, but you are left with possibly a pile of scrap, that you will probably have to pay to get removed.

An extra ~$160 for comprehensive $4000 - $750 = $3250 cover for your car.

I would pay the extra ~$160.

Senecio

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#3067750 24-Apr-2023 19:04

Where are you getting comprehensive insurance for $325?

Normally I would say $5k-$8k is about the threshold for comprehensive insurance if you have the savings to replace your car but when you are getting comprehensive for that little you'd be mad not to pay for comprehensive.

One thing many people don't often think about is if you are involved in a not at fault accident. If you only have 3rd party then you have to chase the other person's insurance company yourself. If you have comprehensive then you just initiate a not at fault claim with your own insurance company and leave them to deal with the other party/s.

xlinknz

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#3067758 24-Apr-2023 19:44

All thank you for your replies

@Senecio $328 with Trademe Insurance with multi policy discount (essentially Tower) good point on 3rd party where someone else is at fault

hsvhel

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#3067759 24-Apr-2023 19:49

If budget allows, comprehensive will be easier should you need to claim.

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Scott3

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#3067783 24-Apr-2023 22:07

That comprehensive insurance is very cheap. (You must be some combination of low risk car, low risk driver demographics & low risk location).

For comparison, back in December 2018 I made the call to drop to third party insurance for a car that we have since replaced. Comprehensive was $720, and third party $171.17. A key factor in that decision was that we had brought a second car for the household, and the hatchback was now going to see very little use.

Time before that I made the call to drop go from comprehensive to third party fire and theft was around 2009. Just had had an at fault nose to tail (my mistake completely. Car ahead had a towbar which meant it was undamaged, but it damaged the bumper & radiator of my car). At that stage, the price difference between comprehensive and third party, fire and theft would have required me to write the car off in the first 18 months for it to be worth it.

At $325, I would say go comprehensive, especially if the car gets used a few times a week.

I'm guessing you have a long history of not crashing cars to get that insurance rate. However consider that your car could get written off from factors beyond your control (crushed by tree while parked, hit by driver that either does a runner, or is uninsured without the menas or will to replace your car).

Had an incident in about 2011. Driver fell asleep behind me on the motorway, writing both cars off (my car was worth about $3500, repair cost about $5000). Was shaping up to look like it was going to be very difficult to get any money out of them (despite their acceptance of fault etc). Then discovered that my policy included damage by uninsured third parties (where the insured can provide their name and address). Much nicer to just get the money from the insurance company (their specialists would no doubt attempt to recover the debt from the at-fault driver - but of course they have skills and resources I do not).

[edit] - This reminds me. Must do a market check for the one of my car's that is due for renewal next month. Renewal price is $890 for the year (Sum insured $7,900. $600 excess, 200kW AWD SUV, parked in a driveway in Auckland, incl roadside rescue & windscreens and windows cover, both drivers experienced 7 no recent crashes...). Should note this is with State which (other than the roadside rescue service) doesn't specifically exclude off road use (noting that pretty much all policies won't cover you if you deliberately do something that is likely to damage the vehicle, like attempting to cross water deep enough that the engine gets flooded). Tower / AA which I have for our Leaf has a blanked exclusion for off-road use (excl beach launching a trailer boat, but otherwise specifically including beaches)

For comparison, the Leaf (Agreed value $13,000, with a $1000 excess, Roadwise vehicle breakdown & opt out of cover for drivers under 25 years old) Cost $617 to insure with trade-me insurance.

Mehrts

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#3067785 24-Apr-2023 22:08

I've got my 2001 Mondeo which is fully covered for $3300 with Tower. With a $500 excess, the premium per year has just jumped from $247 to $309. I do get a slight discount though.

It pays to shop around. AMI insurance were wanting $450/year with $500 excess when I was with them, hence why I moved.