Insurance agreed value increase

[Forg]

I seem to recall that there is a rule/advise that goes along the lines that you should insure what you can’t afford to lose.

So, a cheap car that you can afford to replace could be insured as ‘third party’ only cover. But if you are in hock to your eyeballs on an expensive car, then comprehensive insurance makes perfect sense.

Yep.
And then NRMA comes along & tells you it’s cheaper to insure it comprehensively, D’OH!

”Afford” to lose is a little subjective, too. We’ve been paying off the mortgage for many years now, and the offset-account has more than the VF’s worth in it. But the thing is, for the sake of ~$1200/yr I can totally avoid having to pay the ~$50k or thereabouts for a replacement, should I need to. I mean, I know that long-term it’d be cheaper to ‘self insure’ … but I just don’t want to have to pay that all in one hit should something happen.

The Volvo’s even dumber of me to comprehensively insure. These days it’d cost between 2 & 3 times to build that car than the most I can insure it for, and I’ve never seen one like it for sale (mebbe if I went to Scandinavia …). But then it’s another case of the extra ~$150/yr over third-party not being that much.

 

[chrisp]

Yep.
And then NRMA comes along & tells you it’s cheaper to insure it comprehensively, D’OH!

”Afford” to lose is a little subjective, too. We’ve been paying off the mortgage for many years now, and the offset-account has more than the VF’s worth in it. But the thing is, for the sake of ~$1200/yr I can totally avoid having to pay the ~$50k or thereabouts for a replacement, should I need to. I mean, I know that long-term it’d be cheaper to ‘self insure’ … but I just don’t want to have to pay that all in one hit should something happen.

The Volvo’s even dumber of me to comprehensively insure. These days it’d cost between 2 & 3 times to build that car than the most I can insure it for, and I’ve never seen one like it for sale (mebbe if I went to Scandinavia …). But then it’s another case of the extra ~$150/yr over third-party not being that much.

I agree - affordability is subjective. Just because I could financially afford to lose my car, doesn’t mean that I’m prepared to take that risk!

I think that the other aspect of insurance is separating the random events from the likely events. It makes sense to insure against a seeming random event, wheras it doesn’t make sense to insure against a likely event. For example, theft of a car I would consider random event (I parked in the wrong place at the wrong time), whereas taking out ‘extras’ on a health insurance policy to cover regular dental check ups doesn’t make sense. Dental check ups are almost a certainty so the premiums will factor in that cost, plus add the costs of the insurance companies overheads.

 

[Geoff6666]

Also consider the possibility that if you are hit by an uninsured driver and you are self insured, you will then have to chase the driver at fault for your reparations! Your insurance company is set up to do this and they are extremely aggressive!! I know from experience when I had to go to court when they chased me for a claim that wasn't even my car!!
It was like trying to reason with a terminator!!!

 

[Skylarking]

It was like trying to reason with a terminator!!!

Yep insurance companies sometimes want the cloths off your back.

 

[OldBomb]

It's a Catch 22. My VS Berlina is only worth a few grand in its current condition. The engine would probably need top, bottom & side work, so it's probably cheaper to drop a new one in. It's still in between that funny period of bomb & classic. That's why it remains my daily driver & thus comprehensively insured. I think most cars only become desirable when they get parked in a garage.

 

[Skylarking]

I think most cars only become desirable when they get parked in a garage.

Often a “parked car” is simple a broken down car and it could be that way for many decades before it becomes a classic (if at all). Unfortunately not all classics are worth a lot of money…

 

[RevNev]

I know from experience when I had to go to court when they chased me for a claim that wasn't even my car!!

We had that happen about 5 years ago. A claim sent to our company in relation to a Toyota Landcruiser with our rego number that belongs to an FG Falcon. We don't have a Landcruiser at all, or an FG involved in a bingle. Took a couple of heated phone calls and an email to get rid of them.

 

[losh1971]

We had that happen about 5 years ago. A claim sent to our company in relation to a Toyota Landcruiser with our rego number that belongs to an FG Falcon. We don't have a Landcruiser at all, or an FG involved in a bingle. Took a couple of heated phone calls and an email to get rid of them.

Strange as it sounds I'd almost enjoy that experience. I don't mind a heated phone call when you get to take on the big boys knowing you won't lose..

 

[OldBomb]

Dodgy idiot down the street from me tried this once. I called the insurance company & told them the guy's name, address & occupation as a drug dealer. Never heard another whisper.

 

[Geoff6666]

I've always been with NRMA. Just got my new premium. It's up from $750 to $900!
I thought I'd take a look around.
For the same cover:-
Budget $850
Shannon's $1300
APIA won't do it at all.
AAMI $708

I went in to the NRMA office but they won't compete at all! "Take it or leave it" is their attitude! So much for loyalty . . . . . home, contents, CTP, road service! For years and years!

Looks like I'll be going with AAMI.