To Insure, or not to insure...

[Rocky]

The insurance on the MX5 is due in September and I am wondering whether it is worth continuing to insure it.
As a 2001 model it's nominated value this year will be sub-$10K. (last year was $11K)
Last year after some discussion with Shannons we settled on a premium of $390. for an Agreed value of $13,000. (Excess $500.)
At this age/value, any substantial prang would write the car off and $10K wouldn't go very far towards buying a replacement (goodness only knows what)
It's a gamble, isn't it. What would others do?

[KevGoat]

You'd still want third party property insurance which would probably account for about 30% of that quote, so with that consideration maybe the difference would make it more worthwhile full coverage?

[93_Clubman]

Kev, last time I looked a couple of years ago, Third Party Property was closer to 50% of Rocky's premium. Rocky, as per PM, check out your state's motoring organisation insurance offerings.

[Apu]

We're all a bit too sentimentally attached to our cars.

I've insured by NB only for third party property. The third party property cover will pay for when I am at fault. I figure that if it's not too bad, I'll just suck it up and pay for the repair myself so the insurance company can't decide to write it off. If not, a "shell" won't be too expensive and I'll just transfer what I want over or strip the car and build a Locost.

[billybunter]

once upon a time I worked in a/cs for 10 years or maybe a decade I now work smarter not harder

look at it this way. car stolen and smashed and totally written off! no insurance -you lose $10K or 5 good pair of $ birds plus the incurred costs of towing it to the salvage yard so that's the car and towing fees. although the seats are saved and you sell them for $300 to cover the towing fee so you are highly depressed from this brain storm idea and kicking yourself for not insuring it for the miserable quoted price of $390 BUT wait there's more!

thankfully your wife has come to the party. she thought this bird brain idea of yours was a pretty stupid one and unbeknown to you took full control of the situation. she paid the $390 for the full comprehensive insurance and after you got over your tantrum told you the good news.

you are now $9700 ahead on the agreed value of $10K ...less the incurred fee from Shannon's. lets call it $9K. so you now have a few $$$$ to spend.

you contact billybunter and ask what you could buy in an investment package portfolio or deal in birds for $9K cash. he offers you good advice but no discount for cash. he said his deals are always in cash

anyway the deal falls though when you want a few extra birds thrown in for free-well he actually hung up on you - this happens a bit and you decide stuff bunter- I will just buy another MX5. maybe an SE and he can stick those feather up his......A

every-one happy except bunter but in his world you win some-lose some but there is always another feather plucker around the corner and I am there to pluck them

after you read this - thank your wife! and may the force be with you!

[KevGoat]

... that gave me a headache .......

[Magpie]

Insurance, long-term thinking balanced with short-term considerations.

Further, it all depends on your viewpoint. If you could easily replace the car from available funds then you would be less likely to 'care' about comprehensive insurance. If you can afford the full cost of all the damage you could do then I doubt that you would care about having insurance.

If you would be financially impacted by the loss of the car then yes insurance could be one way of managing your risk. Another way would be to not use it and have it insured as non dríven (very cheap).

Whilst my car is no longer road registered it is still insured. The caveat is that it cannot be under its own power when it is damaged. I did suggest that if I turn the car off before I hit the wall does this imply that it was not under its own power. The person did ponder the question and in the end asked how did it come to be hitting the wall, my reply that it rolled down a very big hill onto the racetrack and then hit the wall got a laugh, but no surprise that it would not be covered in those circumstances.

What it is covered for is when it is on the trailer, in the shed at home and in the pits if somebody runs into it.

[billybunter]

KevGoat

well there's no insurance on birds and I know from experience what its like to look on the floor and find one dead and sometimes more never do I look down and pick them up and say - what a pity

but I do say -another $700 or $1000 F....gone but I do insure all my cars and the bike

[Mr Morlock]

With an uninsured car the whole value of the car and another car(s) can be gone in a blink. Run into a new unisured super car ( the Ferrari that the bloke only uses on pancake days) and "your" fault and literally that could wipe out a life savings. I would not even think about not insuring my road cars. There are opportunities to reduce premiums for low use etc- $390 is low premium for 12 mths- I pay more than that by a margin with the same mob and still probably only drive the sports car once a week. All road cars should be insured for damage in my view but is not the case in Au. We are all at risk with people driving uninsured cars. I dont think the difference between 3rd Part property damage and full insurance makes much sense economically but at least safer for other road users. Incidentally $10K today can buy a very good car - MX-5s actually bring quite high prices and for day to day practical duties you can do much better than an MX-5.

[project.r.racing]

$390 to insure $10K worth of car is good. Be a different story if the car was worth $2K.

[hks_kansei]

For that price I'd insure it with full comp.

My first car was only on 3rd party because it was only worth $1500, and comprehensive would have cost me $1200 a year, hence I went with 3rd party.


But for the mx5, while $10k won't buy a new car, it's certainly enough to get a replacement mx5 of similar condition. (Well, maybe not yours since its a freakishly well looked after one)


In my case all our cars are insured,because if any of them were written off, I can't afford to just call it finished and buy one from savings. And I'd hate to lose the cash I could make had I sold it before an accident.

[JBT]

Was that quote for limited use?

[Red_Bullet]

Insurance, long-term thinking balanced with short-term considerations.

Further, it all depends on your viewpoint. If you could easily replace the car from available funds then you would be less likely to 'care' about comprehensive insurance. If you can afford the full cost of all the damage you could do then I doubt that you would care about having insurance.

If you would be financially impacted by the loss of the car then yes insurance could be one way of managing your risk. Another way would be to not use it and have it insured as non dríven (very cheap).

Whilst my car is no longer road registered it is still insured. The caveat is that it cannot be under its own power when it is damaged. I did suggest that if I turn the car off before I hit the wall does this imply that it was not under its own power. The person did ponder the question and in the end asked how did it come to be hitting the wall, my reply that it rolled down a very big hill onto the racetrack and then hit the wall got a laugh, but no surprise that it would not be covered in those circumstances.

What it is covered for is when it is on the trailer, in the shed at home and in the pits if somebody runs into it.

I agree with Magpie, it depends on your viewpoint and you own financial situation whether to have comprehensive insurance. Third party property however is essential as running into a Ferrari 458 would cripple most people.

[kalt]

For that premium and excess, definitely insure. Unless Rocky purchased new and has been hit by depreciation. Have you calculated the total amount paid in premiums over the life of the car? Guessing it's close to $12,000?

Look at it this way, if you're the not at fault party when someone write's your car off for you, you may be able get a refund on the unused amount from your insurer*.


*That is if you survive through being fatally maimed in the coffin on wheels.

[smy0003]

$390 for full comp on a $13,000 agreed value...

I can't get full comp for less than $2500 for my $15,000 RS250.