Car Insurance Ridiculousness

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Wheelbarrow01

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Chorus

#323960 8-Feb-2026 22:33

Anyone seen this Stuff article?

TLDR - Insurance company decides a 2002 Subaru's "agreed value" is magically 2.5 times higher than last year, so hikes the premium to align with the new "value" AND removes the customer's option to have a higher excess that reduces the annual premium.

The customer previously had a $2500 excess but has been told the maximum excess is now $1000 with the insurer unilaterally determining that the $1000 excess cap is a "reasonable and accessible amount for customers" and ensures excess options that are "simple and easy for customers to select".

Apologies for swearing on here but what new form of sh1tf*ckery is this?

Ignoring this particular customer's circumstances for a moment (insuring a car for $4k with a $2.5k excess seems rather pointless unless it's specifically for the 3rd party benefit), if this is the way the industry is heading in order to boost their already eye watering profits, I can see a lot more people choosing to self insure and/or just opting for 3rd party cover.

I'll be watching my renewals with interest this year....

cruxis

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#3459828 9-Feb-2026 08:22

My personal rule is that if a car is worth less than $5,000, full coverage isn’t worth it, so I stick with third‑party. For my 1999 Toyota Platz, third‑party comes with a $500 excess and costs $5.18 per fortnight. It just makes ROI sense

Senecio

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#3459829 9-Feb-2026 08:47

I have a few thoughts on this and other car insurances.

Agreed value on anything other than a rare or modified car is pointless. The agreed value changes each year so you're better off just going with market value on anything run of the mill.
I have no problem with people electing a higher excess to pay lower annual premiums. Effectively they are choosing to insure themselves against damage to other's property while self insuring their own car. But instead of only having 3rd party property cover they have the backing of a comprehensive policy should they need it. Insurance companies treat 3rd party customers like second rate citizens when the crap hits the fan so knowing you have the backing of a comprehensive cover if needed is reassuring.

Aucklandjafa

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#3459855 9-Feb-2026 10:09

cruxis:

My personal rule is that if a car is worth less than $5,000, full coverage isn’t worth it, so I stick with third‑party. For my 1999 Toyota Platz, third‑party comes with a $500 excess and costs $5.18 per fortnight. It just makes ROI sense

yes, unless you live on a street where vehicles are regularly side-swiped.

Handsomedan

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#3459856 9-Feb-2026 10:25

Aucklandjafa:

cruxis:

My personal rule is that if a car is worth less than $5,000, full coverage isn’t worth it, so I stick with third‑party. For my 1999 Toyota Platz, third‑party comes with a $500 excess and costs $5.18 per fortnight. It just makes ROI sense

yes, unless you live on a street where vehicles are regularly side-swiped.

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geek3001

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#3459876 9-Feb-2026 11:14

Handsomedan:

yes, unless you live on a street where vehicles are regularly side-swiped.

This is a good example of why it is necessary to carefully read the policy and its terms.

My previous car insurance company had a clause that read along the lines of "you must take all reasonable steps to reduce the risk of damage to the insured property". They provided examples like choosing to park in a well lit area rather than a dark alley, etc.

My current insurer does currently include this type of clause.

Repeated claims for damage for side swipes might result in a policy exclusion for that sort of damage going forward. Not much help if the only place you can realistically park is a higher-risk area.

nztim

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#3459878 9-Feb-2026 11:25

JDM Performance cars from the 90s and Early 2000s have skyrockted in value so this does not surprise me

My mate got hit in his 2001 Twin Turbo Subaru legacy (insured for $4000 at the time) the insurance company wrote it off. He brought it back off the insurance company and paid for the repairs, it three years later it has an agreed value of $15K

So I believe this.....

Any views expressed on these forums are my own and don't necessarily reflect those of my employer.

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mudguard

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#3459927 9-Feb-2026 11:38

nztim:

JDM Performance cars from the 90s and Early 2000s have skyrockted in value so this does not surprise me

My mate got hit in his 2001 Twin Turbo Subaru legacy (insured for $4000 at the time) the insurance company wrote it off. He brought it back off the insurance company and paid for the repairs, it three years later it has an agreed value of $15K

So I believe this.....

As an owner of an old piece of a JDM goodness, it's a bit of a double edged sword. Plenty of people have high asking prices. But it's difficult to gauge what they actually sell for.

The other big difference is the old Porsche or Aussie/US muscle that we usually consider classics most of the time had barely an kms on them. Whereas people are asking $20,000 for a VTEC Honda with 200,000kms on the clock (not as many as mine 🤣)

nztim

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#3459951 9-Feb-2026 13:14

mudguard:

Whereas people are asking $20,000 for a VTEC Honda with 200,000kms on the clock (not as many as mine 🤣)

I had a 1992 Corolla Silvertop 4AGE, the engine lost compression at $300000kms and I sold it to a wrecker for $500, he fixed it up and sold it for $7k :(

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scuwp

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#3459961 9-Feb-2026 14:20

Last year I purchased a regular car for $6,000. Thought it was a good deal, similar vehicles were selling for around $7,000.

The maximum my insurance company would allow me to unsure it for was $4,000 (agreed value). They insisted this was the "redbook" value. I had to fight them tooth and nail, providing lots of evidence, to get them to agree to increase the policy to $6,000.

It came up for its annual renewal recently, the new policies agreed value...$8500!!! So the agreed value according to their "redbook" value doubled in a year.

No one at the insurance company could explain it - it's just what their 'system' said based on the value of the vehicle and risk profile. Nothing has changed in between times. Same car, same drivers, same circumstances, same cover, same excess.

Premium was slightly more but only by a few $. Ended up agreeing on a policy at $7,000 and premiums less than last year.

Someone make sense of this please...

Lazy is such an ugly word, I prefer to call it selective participation

MikeAqua

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#3473093 24-Mar-2026 12:09

We go through a broker, for most of our vehicles, and we don't experience the shenanigans other people are encountering. Our JDM performance car is registered under a classic car policy. We get it professionally valued every few years for that.

Mike