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  1. #1
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    Default Talking of insurance - Vehicle Insurance

    Debating the merits of having comprehensive over third party!

    Assuming you have a vehicle of say value $2500 how much damage would classify that as uneconomic to repair (not structural)? If the damage is minor and repairable seems pointless having the vehicle covered fully comprehensive to have the it wriiten of as an uneconomic repair when it can be repaired.

    What kind of damge though would warrent an economic write off to a cheap car less than $3000 vehicle?

  2. #2
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    Default Re: Talking of insurance - Vehicle Insurance

    I would go for 3rd party only on that value vehicle. By the time you take account of the premium and the excess it is unlikely to be worth insuring. It would be cheaper to just work on replacing in the event of major damage to it. Any repair work would exceed its value even for a relatively minor ding.

  3. #3
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    Default Re: Talking of insurance - Vehicle Insurance

    Quote Originally Posted by CliveM View Post
    Any repair work would exceed its value even for a relatively minor ding.
    Thats actually what I was trying to figure out! What kind of damage would exceed economic repair. Choice between letting the insurance own the vehicle or reapiring it myself in the unforseen event.

  4. #4
    Evil Super Villain Cato's Avatar
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    Default Re: Talking of insurance - Vehicle Insurance

    Quote Originally Posted by coldfront View Post
    Debating the merits of having comprehensive over third party!

    Assuming you have a vehicle of say value $2500 how much damage would classify that as uneconomic to repair (not structural)? If the damage is minor and repairable seems pointless having the vehicle covered fully comprehensive to have the it wriiten of as an uneconomic repair when it can be repaired.

    What kind of damge though would warrent an economic write off to a cheap car less than $3000 vehicle?
    Depends on how old you are...

    All the add-on excesses they have etc... You'll have to pay more than half your car's value if you're under 25.

    If you had an agreed value policy, maybe you can get something out of it. If it's market value, regardless of what they say to you they will give you the lowest possible number. What you think is worth 2500 suddenly becomes 1500... And what do you get out of it after the excess?

    Usually it's cheaper for them to write it off than repair at 2500.
    If you go to a panel beater, with even the slightest damage and say you're with an insurance company, the quote you get will be double of what you would normally pay if you didn't have insurance.

    I was in an accident a few years ago. Went to 4-5 panel beaters, I too preferred a write off - I didn't mention that to anyone, most quotes ranged from 2200-2700 - for relatively minor damage. (A car worth 4k)
    Then I went to another one, they asked me if I was with insurance and I said no, all done for 550$. Which was less than my excess.
    Insurance companies these days have approved (or at least preferred) panel beaters to access the damage, so you really don't know what they will decide is worthy of a write off.
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  5. #5
    Noobish Pirate hueybot3000's Avatar
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    Default Re: Talking of insurance - Vehicle Insurance

    My dad had a early 90's corolla with 350k's that took a hit up the ass. Rather than repair the car the insurance company came to him with a settlement of $600, he then sold the car as damaged for $600. He paid about that for it a few years ago. The replacement vehicle cost him $2700, slightly newer and tidier but similar k's. So he lost out $1500 odd for no real gain. With full cover and an excess appropriate to his age/record he would have saved 1k at most I reckon, split that over a few years of premiums and your still losing out but also giving the insurance company more $.

    Like Cato says the value makes the difference. I wouldn't have a policy on market value purely because the market changes, whereas with agreed value you know what your getting. My car (BMW 540) is covered for 10k which is maybe a bit low but at least I know that If I lose it then I will get the money I need for replacing it. My excess is around the $400 mark.

    There is also a decrease in decent "cheap" cars as replacements for a written off 3rd party insured car so maybe factor that in as well.

    Edit: Regarding your question. I very slightly rear ended (was doing about 8k at impact) a mid 90s primera about 4 years ago and that cost me $1900 in repairs as I didn't claim. For just a small nudge that brings you pretty close to the value of your car so insurance may consider writeoff.
    Last edited by hueybot3000; 04-08-2012 at 12:49 AM.

  6. #6
    Senior Member pctek's Avatar
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    Default Re: Talking of insurance - Vehicle Insurance

    Quote Originally Posted by coldfront View Post
    Assuming you have a vehicle of say value $2500 how much damage would classify that as uneconomic to repair (not structural)?
    Or look it like we do.
    My cars never cost more than $2000 (so far) but if it's written off, how do I buy another? Haven't got $2000 lying around.

    Husbands ute was on $3000 with AMI a while ago. He had an accident and damage came to $2700. They fixed it. We did think they might write it off, but no.

    My $1500 Toyota got written off, never mind, it's how I bought the next one. Excess was $100 at the time.

    We since changed to AA on cars, excess $300 but the ute is now insured for book value of $4000, way more than AMIs insistence it's current book value of $1700.

    Additionally AMI's 3rd party on ute wasn't cheaper premiums than full at $1700, so what was the point...
    wipe your paws.

  7. #7
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    Default Re: Talking of insurance - Vehicle Insurance

    Might not have been very clear on this.

    My vehicles are currently insured Full Comprehensive and Agreed Values and excess $300. Simply put not one of them is over $2500 on the agreed value although the AAs new policys do state if the Market value is higher than the Agreed value it will pay the higher of the the figures. Its interesting when you get a qoute from the AA to see that they have an agreed value range that you can choose your value between those two figures.

    What I was trying to establish was what kind of damage would most likely cause an uneconomic repair situation as with comprehensive the Insurance Company takes ownership of the vehicle, and any refund of on road costs plus your insurance ceases at that point without refund. Sucks if you just put a years licence on you lose that off the value as well.

    Makes some sense not to have full comp in somes case especially with light damage just trying to fathom what light damage would be given the amount of agreed value can be reduced not just by the excess but by loss of on road costs!

  8. #8
    Member mzee's Avatar
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    Default Re: Talking of insurance - Vehicle Insurance

    I only have comprehensive insurance on cars that are worth more than $5000. Below that I have 3rd party. For instance, I have a Honda US Wagon at the moment. In the event of it being badly damaged I can buy another for $2500 and build a good one out of the two.

  9. #9
    Large Member plod's Avatar
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    Default Re: Talking of insurance - Vehicle Insurance

    Quote Originally Posted by mzee View Post
    I only have comprehensive insurance on cars that are worth more than $5000. Below that I have 3rd party. For instance, I have a Honda US Wagon at the moment. In the event of it being badly damaged I can buy another for $2500 and build a good one out of the two.
    You would need at least 5 to make a decent one
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  10. #10
    Senior Member pctek's Avatar
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    Default Re: Talking of insurance - Vehicle Insurance

    Quote Originally Posted by coldfront View Post
    What I was trying to establish was what kind of damage would most likely cause an uneconomic repair situation .
    Anything that will cause the repair cost to be close to the total sum insured.
    The situation with our ute, initial repair cost was meant to be $1900. Then once it started repairs said it needed another sterring box as well, making it $2700.

    If they had said $2700 in the first place it would have been written off as the total value then was $3000.
    wipe your paws.

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