Cars & Motorbikes Who self insures their car? (~20k worth)

Discussion in 'Living Room' started by FinnMcCool, 18th May, 2017.

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  1. FinnMcCool

    FinnMcCool Active Member

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    Hey guys!

    My fully comprehensive car insurance is up for renewal. And like other years, I'm wondering if it's worth it.

    My car is valued at about $20k. It's parked off street (out of sight) and I only drive it on weekends. I do less than 10,000kms per year. I'm 40 years old with a very good driving record, no claims in the last 5 years.

    I did scrape the car once about 7 years ago and it was about $850 to repair. It was so cheap I didn't bother going through insurance.

    My annual premium is $1,500 - 2,000 as it's an import.

    It's a 2007 model prestige car with very good factory immobiliser. I've completed 2x advanced safety driving courses and the car is well maintained (tyres, brakes, servicing are always tip top).

    I've almost saved the value of the car in a long term savings account, so in the event of a total at fault loss I could buy another similar car (i.e. it would suck but not be catastrophic).

    I'm considering going 3rd party fire and theft.

    Who else out here 'self insures' there car in this way?


    FMc.
     
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  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    have done same in the past

    there comes a point where the premium is sort of like insuring a burning house

    ta
    rolf
     
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  3. Perthguy

    Perthguy Well-Known Member

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    I have in the past. No issues but you must as a minimum have 3rd party. How much is your 3rd party fire and theft by the way? Mine was very cheap but last time I did the ring around, someone offered me comprehensive for a few dollars more than I was paying for 3pft, so I went with that. No idea who it was. Maybe Coles or Woolworths?
     
  4. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Why must you have 3rd party as a minimum?
    I drive an old ute around quite regularly with no insurance on it at all.
    The only essential insurance required is a green slip for rego.
     
  5. FinnMcCool

    FinnMcCool Active Member

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    I think my biggest issue is that it's an import. Fully comp is 2x a regular car, and only very few insurers do it (Lumley Special Vehicles, Just Cars @ reasonable prices - RACV, Suncorp, etc @ exorbitant prices).

    But for some reason 3rd is same as most regular cars.

    I think the perception is import = costly repairs (so full comp = expensive, 3rd party no change)
     
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  6. FinnMcCool

    FinnMcCool Active Member

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    What if you hit a Merc or a power pole?
     
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  7. Perthguy

    Perthguy Well-Known Member

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    My mate drove into the back of a merc that was transporting champagne to a wedding. Last time I talked to him he was still paying it off.

    My view is that accidents happen and I don't want to be stuck with the bill if they do. For a small amount I can insure against this. I always have a minimum of 3rd party.
     
  8. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Well then the self insurance fund would need to make a withdrawal.
    But last time I looked, power poles are stationary objects.
    In 24 years of driving the most severe damage I've ever incurred as a driver is a tiny bit of gutter rash on my rear passenger side rim.
     
  9. Phase2

    Phase2 Well-Known Member

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    Have you tried progressive? They've always been the best price for me, and I've had no real problems with claims. Their premiums seem to be based on replacement cost of the vehicle (I've tried quotes from them with different vehicles, and different values and the results were consistent across the valuations).
     
  10. wylie

    wylie Moderator Staff Member

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    Our son has just changed from comprehensive to third party to cover another car or property plus rego covers him if he hits a person (as I understand it, and also as discussed with the insurer).

    His car is not valued enough to warrant the premium for comprehensive cover.

    I'd consider this as our car loses value but never, ever would I not have third party cover. What if you hit a Maserati or the power pole takes out the power for a whole suburb and you have to fork out the cost to fix?
     
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  11. FinnMcCool

    FinnMcCool Active Member

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    OK, some prices (just as a guide to compare the difference)

    RACV - full comp - $1,700 (covers up to $22k)
    RACV - 3rd party + fire + theft - $550 (but only covers up to $10k)
    RACV - 3rd party only - $420 (again only $10k)

    Do any insurers cover more than $10k for 3rd party or is this the standard?
     
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  12. wylie

    wylie Moderator Staff Member

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    Interesting question. I'm going to check the policy to see if there is a limit in the third party cover. It wasn't mentioned on the phone at all.
     
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  13. Perthguy

    Perthguy Well-Known Member

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    Yeah, that actually happens:

    Nearly 2000 homes were without electricity when a car snapped a power pole in Kewdale this morning.

    [​IMG]

    That said, most people don't drive like this.
     
  14. Whitecat

    Whitecat Well-Known Member

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    I did this recently with a car worth about 5500 then I caused a massive smash ended up selling the car for 1100 and that took a lot of work to get that
    I think I saved myself a couple of hundred bucks on the policy.
    When I looked back on my decision I think I should have kept the comprehensive on it
     
  15. Vassago

    Vassago Well-Known Member

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    Got a 4x4 worth ~$15k and have had only 3rd party for a few years now.

    3rd party was $180pa. Full Comp was $750pa.

    If someone crashes into me, they pay to fix it.
    If I crash into someone there is likely minimal damage to my car due to a steel bull bar (not a pansy stainless or ally one).

    Worse case scenario I am forced to upgrade.

    This is a risk I am prepared to accept.

    I have insurance for other risks that I am not prepared to accept like income protection, trauma and building insurance.
     
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  16. hammer

    hammer Well-Known Member

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    Not for a 20k car...too much coin to lose should something go wrong.

    However once the value gets below 10k....I don't think comprehensive is worth it..

    I'd always have 3rd party though. No matter what.
     
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  17. Magnet

    Magnet Well-Known Member

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    The green slip is 3rd party insurance. It insures you if you or someone else is injured in an accident. If you don't have 3rd party you can't register your car.
     
  18. Ace in the Hole

    Ace in the Hole Well-Known Member

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    I believe the 3rd party insurance people are referring to here is 3rd party property damage insurance as opposed to comprehensive insurance.
    Could be wrong.
     
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  19. wylie

    wylie Moderator Staff Member

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    I just called our insurer and whilst the cover is for legal liability up to $20m, the car itself is not covered, unless it is in a bingle caused by someone with no insurance, where it is actually covered up to $5k for our car.
     
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  20. Magnet

    Magnet Well-Known Member

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    Yep, makes sense!