- April 27, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Is It Worth Spending $2,000-$2,200 for Comprehensive Car Insurance for a $5,000 Car?
Car insurance costs have skyrocketed in recent years, making it increasingly difficult to justify the expense. I have owned my first car for quite some time now and have been paying for comprehensive car insurance every year. However, as the renewal date approaches, I am feeling the financial strain and dreading the cost.
One incident that stands out is when someone caused a significant dent in my car and left a fake phone number. Making a claim cost me $800 in excess, and my premium increased by $1,000 from the previous year. In total, I was out of pocket $1,800 for a single dent. It was a costly lesson learned.
This year, my insurance premiums have risen to $2,200, and it has me on the verge of tears. I am considering switching to third-party insurance, which is significantly cheaper at $800. However, I am torn because this is my first car, and while I cherish it, I struggle to justify spending half of its market value on insurance annually.
Given that my car already bears several dents, scratches, and bangs caused by careless individuals, I am leaning towards opting for third-party insurance and driving the car until it cannot go any further. The sentiment of not treating a first car with utmost care is prevalent among many car owners.
I would appreciate hearing your opinions on this matter.
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****** just grabbed a
Just get 3rd party and put the savings in an emergency fund to replace your car.
Nope. Get 3rd party fire and theft and bank the savings in case you smash it (ie. self insure).
Absolutely no.
3rd party theft, save the difference between 3rd party and full comp, this is your new car fund.
Are you planning on writing off your car every 2 years?
It sounds like you might be a younger/inexperienced driver. The companies have data that says you’re in a group more likely to cost them, so premiums can be much higher.
I just renewed at $1100 for a $35k vehicle with a $750 excess. Have you looked at taking a higher excess to reduce your annual premium? I recently moved suburbs which added more than $300 to last year’s premium, so where you live counts. TPFT is the least you should have if you have confidence in your safe driving risk.
Absolutely not, definitely go 3rd party. I’d also shop around and look for a better deal. $800 for 3rd party seems too high
how is this even a serious question.
That’s madness, no. A few ideas:
– shop around for an insurer that does KM based insurance if you don’t drive far
– consider 3rd party fire and property insurance instead
– definitely consider non major insurance brands. We used Rollin’ insurance for an older car (16yrs), full comprehensive on it is $33/mo. We only drive it like 10k/km/year as a backup car for Bunnings visits etc.
No that is absolute madness.
Good rule of thumb is if your comprehensive premiums are more than 10% of the value of the car then it’s probably not worth it.
Nope. You’re getting robbed.
Go third party fire theft, put the savings into a seperate account, in the absolute worst case your year 1 savings could contribute a lot towards another cheap car if something were to happen.
Hmm.. sounds like your car insurance is taking you for a ride. Time to switch insurers. I pay like 1,100/year for my 2010 Toyota. Comprehensive insurance.
At the minimum get third party, your car might not be worth much but if you are at fault and crash into a Ferrari, or someone’s house you are liable for the damages.
Shop around. Loyalty to an insurer doesn’t pay.
Think of who you might hit. Even a minor dingle with 2 vehicles can cost you upwards of $5000
My third party property (aami) covers up to 5k damage to my car if the accident isn’t my fault. I figure that’s 80% as good as comprehensive as any accident is unlikely to be my fault and my car is worth under 5k.
Check your fine print.
How is your insurance $2000+ on a car worth only $5k? Have you shopped around?
Full comprehensive Insurance on my 2012 carnival, agreed value of $25k, is under $1000pa, excess set at $500. I shop around every year when my renewal is due, and look at who can give me the best quote. Do not use comparison sites. Go direct to all the insurers sites and go through the quote process.
I have had accidents in the last 5 years which were my fault and my premium is no where near that..
there’s something about your data that’s pumping the premium up.. possibly demerit point loss, drink driving, loss of license?
No. Get third party property for sure, in case u hit a rolls royce but otherwise not worth it.
Your insurance isn’t for your car. It’s for when you hit a Bentley.
If you have to ask you already know the answer
For third party only insurance, AAMI and budget direct are the two I’ve flipped between over the last 10 years on my car worth less than yours.
Check those out as a starting point then research others to see if you can beat them.
$220 with AAMI this year. No fire and theft though and considering you may be in a higher risk range, it may be more
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My car is about the same, I just get 3rd party insurance and regularly put extra into savings and I have enough to buy a new 5k car if needed.
3rd party property + fire & theft for your own.
If you’re a safe driver, low chance you’ll cause damage to your own car that’s your fault etc.
Also in the above, you said you made a claim but didn’t want to pay the excess? So that means you didn’t make a claim?
If you just got the dent fixed at a panel beater and paid out of your own pocket, why did your premium go up?
As others have said it’s not a good idea. But it’s also worth getting quotes from other providers as insurers generally increase premiums year on year. Jumping to an alternative company may halve your premium.
No. How are you even considering this?
I legit considered 3rd party on a 30k car when it went to two thousand dollars..
Shop around. You’d be surprised at the difference in price between insurance providers.
Consider 3rd party fire and theft, and see what other insurers can offer you. I loved my first car too. But I knew I was a good driver, so I was unlikely to cause anything. Still no at-fault accidents. I just fire/theft/3rd-partied it every year for like $300. I could have replaced the car in 2-3 years of saved money. It’s really not worth it to pay full comp if it’s like 50% of the car’s value. You gotta consider whether you’re safe and responsible enough to take on that risk. In the end, it’s a decision you need to make for yourself.
Yes- yes insure it fully to the maximum value- chose the most expensive provider.
Subtract the excess.
Is there a 50% chance youll write off that car in the next 12 months?
If yes, get full, if no, get third party.
No. Just get 3rd party
Just get third party. You want some kind of insurance.. you don’t want to be “that guy”.
No wayyyyyyy just get the default third part stuff for like $50 for the year so others are protected
The insurer shouldn’t be offering this insurance. It was on of the recommendations from the Royal Commission to not take advantage of people. And this is clearly the case.
No I would just get 3rd party property damage and save the difference towards a replacement car eventually if you can.
In two years it’s lost. Just get 3rd party property in case you junk up someone’s Audi. And if you are hit by someone uninsured, the 3rd party usually covers up to 5k anyway
At 5k car, and 2200 a year in comprehensive insurance isn’t really worth it. Because your going to end up spending 3000 if you have an accident and that goes up every single year, after 2 years and an accident your at 5200 and it’s already more than the value of the car spent. So it’s probably not worth it. Just realise you’ll take a loss on the 5k car if you crash it or someone crashes into it. (3rd party property won’t chase the other driver at fault for you, so high chance you’ll never see anything from them) just save the 2200 a year for the next car purchase.
I pay $50 a month, maybe try shopping around