Hello everyone, I've been a fan of ozB community and thankful for all the support I've got and further would like to get suggestions from you all.
So, I'm a part time working international student and recently upgraded my car. My old car was a cheap one and didn't bother getting any insurance on it other than the CTP. Now, after Saving up for long, I managed to get a decent condition car for around 7k. However, I spent a huge chunk of my savings to get this car keeping in mind all other costs and risks.
I have been around for a few reading forums and posts of this community but didn't get my questions answered so thought it would be a better idea to ask this directly and here I am.
Need suggestions and opinions on whether I should get a third-party comprehensive insurance or just be uninsured ? What other costs are involved ?
Also need suggestions on the cheapest and best one if there is any?
Should I Buy a Third Party Car Insurance ?
Comments
Just be aware that these sites only compare from a narrow range of insurers, and don't guarantee the best price either. It's a good point to gauge the market though.
If you are getting Third party Insurance, try NRMA, they had a special few weeks ago for $10 a month ( cheapsest ever I have seen) and covers your car in case of fire and theft for upto $10k.
Really does depend on the state
shop around for good quote.
I'm assuming you're in NSW so you need:
CTP (Compulsory Third Party insurance) which is required for your car to be registered. It covers personal injury that you cause others.
PLUS EITHER:
Third Party Property Damage - Covers property damage (when you're deemed to be at fault) that you cause others (such as vehicles, homes, council fixtures, etc). The downside to this cover (compared to Comprehensive), is if someone, who isn't insured, damages your car, you may have to sue them yourself to recover the cost to repair your car. This will be a very long process.
OR
Comprehensive insurance - Covers your vehicle and the property of others (whether you're at fault or not - excess is payable if you lodge a claim and can't identify the party at fault).
I'm not being cheap or it's not like I don't wana pay for insurance. It's just that I'm fairly new here and still a student working part time and might not have enough information or knowledge about what insurance to get that's the reason I have put up a post here to get a point of view from you all. I agree now that I should get an insurance cover so further asking for suggestions. Thank you all for your time.
Third party Property with Fire and Theft, is a little better.
Generally for younger drivers this also is a lot cheaper. Insurance companies see lower risk when the driver has more of an incentive to look after their own car.
Some international student t-boned my mate's work ute and was pretty much a write off. The other driver did not have insurance and the costs were around $45k.
You want insurance.
I am just curious about what happens if they leave? who will pay us for the damage if we only have third party insurance ?
I have a ex relo who ran up the back of a car was a 10k write off, no ins. Stuck in the back blocks of Argentina where they are from now cause of covid, doubt it will ever be paid.
I believe the answer is “no one pays you” if you can’t get the money from the at fault party and you don’t have comprehensive insurance. It’s an additional reason to get comprehensive
They get stung for it the next time they think about re-entering Aus
Some international students can just call home and they will have that $45K into their account the next day. Whether they use it to pay for the damage or not is a different story.
Or you pay for insurance and pay the excess and save themselves tens of thousands of dollars.
"spent a huge chunk of my savings to get this car keeping in mind all other costs and risks."
this is the issue in the first place, you should consider the total cost of ownership of a car, what happens if there is a major repair or maintenance ?
Third party property insurance is a must. what happens if you run into a car worth few 100k?
I'm guessing that if OP ran into another car worth $5k, it would financially ruin them… let alone a $100,000+ car.
Look for deals eg CUA is giving way a $250 Mastercard, Woolworths gives $100 gift card and other deals and sweeteners
Should I Buy a Third Party Car Insurance ?
YES
Some suggestions for follow up questions:
Should I keep my car roadworthy ?
Should I service my car regularly ?
Should I put fuel in my car ?
Should I wear my seatbelt when driving my car ?
Should I wear my seatbelt when driving my car ?
A Yaris had a very minor low speed accident turning into my street on Friday night. It appears he wasn't wearing a seatbelt and the airbag "saved" him. Was he in a bad way. To his credit, he did avoid the UberEats rider that failed to give way at the end of the bicycle path.
It appears he wasn't wearing a seatbelt and the airbag "saved" him.
Airbags are designed to work with seatbelts, not in lieu of them. You definitely need the seatbelt to keep you in place and prevent the airbag from coming into even more forceful contact with you as you're thrown forward in an accident.
I genuinely don't understand how people can be in a car without one - it feels so strange to not wear one.
Okay, so I was looking on online for various quotes from insurers also I forgot to mention that I work at Dominos as a delivery expert so most of the times I'm on the road. So now, when I'm looking up online for third-party damage or comprehensive policies, I see that they don't provide insurance for occupational purposes. Let's say I claim my purpose as "private", so will I be covered if anything happens?
Not if you're conducting deliveries while driving a personal vehicle. Could be wrong without reading the PDS but from the sounds of it, driving while on the job doesn't constitute "private" to me. Does Dominos cover you while on the job? They might if you're using a personal vehicle?
Yes, I do get covered when I'm on deliveries. So I was just curious whether I should choose the option as private or business?
What does the policy actually say you are covered for? Have you read and understood the PDS supplied by Dominos?
In that case its private as you're already covered during work by Domino's.
In that case its private as you're already covered during work by Domino's.
I think the OP should be VERY sure of this first. Given they don't appear to be completely up with insurance/coverage etc.
If you are using the your car for both work and personal then you can still get any insurance you want. Make sure that you get a logbook as you can claim any expenses on your tax return.
delivery expert
Bah ha ha ha ha. Ha ha ha ha ha ha.
That’s … bah ha ha ha ha ha ha.
You seem to be an expert at mocking other's occupation? At least the guy is earning an honest money.
Im not mocking the occupation. I’m mocking dominos calling them ‘delivery experts’. Ridiculous job title don’t make the task more important - not that delivering pizzas isn’t important. it’s a low skill job, don’t sugar coat it.
Being a delivery driver is a perfectly acceptable way to earn.
Depends on the insurer. Some say "What is the primary use of this vehicle", others will ask for a list of uses and will pick the most expensive one to insure, no matter how much you put the vehicle to that usage. You also need to pay attention to what is written in the Product Disclosure Statement, as that is the actual contract document that your policy is written around. The primary use can be based on kms travelled or time used, or any combination. Like I said, it all depends on the insurer and what they have put into the PDS. FYI - I'm a part-timer with an insurance company.
Call your intended insurer and ask them exactly what you've written here. Then you know for sure.
As an Insurance Broker, I would say no, you're not covered for a lot of the Direct Insurers.
A lot of them ask if you use the car for business and won't cover anything if you get into an accident because you didn't tell them.
I know RACV won't jack up the price for it but, for the others, honestly a little beyond me.
You need third party minimum. You're already broke, hit a brand new camry and you're done.
Take the time to Google.
If he's got enough to just afford his car, I doubt he has enough to get insurance let alone keep it insured…
CTP. That's compulsory. You are covered on this. You don't have to worry if you cause injury to somebody and turn them into a quadriplegic.
Third Party Property. You need this as a minimum to cover the cost of ant damage you do to other peoples property.
Hit a $400,000 Rolls Royce - you are covered.
Run through the front window of an expensive antique crystal glassware shop and break every piece of stock they have. You are covered.
Break your own car - you aren't covered.
Buy this if you can afford to pay for the total loss of your own car.TPP, Fire and Theft.
If your car is stolen or burnt out they will pay you rock-bottom market value which will be nowhere near the $7k you paid for your car. It's better than nothing and great if you park on the street.Comprehensive. Everything is covered. You can either get market value or pay a bit extra and get an agreed value policy.
If your car is stolen or burnt out they will pay you rock-bottom market value which will be nowhere near the $7k you paid for your car. It's better than nothing and great if you park on the street.
Thief proof your car….there was a thread about this sometime ago where someone asked how to thief proof their car….
Some insurers will let you specify a value in a 3rdP F&T policy, up to a predetermined maximum, which can be based off the market value, or an arbitrary maximum.
Even if you consider yourself a very good driver, mistakes happen and some can easily cost you in excess of $25k . I personally know someone who had a third party claim of $25k plus after an at-fault multivehicle accident. So paying a few hundred for a third party insurance annually is a no-brainer.
Thank you all for your replies! I've got to know my mistake and will get the insurance done properly ASAP. Appreciate the time you all put in, thanks and regards.
Well done for asking and doing it before you became another "I've crashed and have no insurance" post.
Haha yes, late than never.
Or a book. 🤣🤣🤣
There was the story in here of someone's missus who did a hook turn in front of a Maserati when the light wasn't red, got T-boned, and had to pay $60.000 worth of damage. Don't risk it!
We don't actually know what happened afterwards….the OP never replied back to update the situation….so we don't know if she ended up paying whatever amount it was to that other guy or she went bankrupt and paid $0.
Even if she went bankrupt, Mr Maserati may have had his own insurance which would cover his damage, and then his insurance company will haunt Mrs Hook-turn for the costs incurred.
She'll tell them to fob off since she doesnt even have the money to pay back! hahahaha
But is bankruptcy worth $500-1500 a year?
And is it worth not being able to apply for anything in the Finance Industry for 5-10 years?
What you should be getting is Fire and Theft… which includes damage toward another vehicle.
You really don't want to damage a Merc!
With these form of insurance, which is far far cheaper than full comprehensive, actually covers your own vehicle up to about 3.5k.
Your 7k vehicle is cheap.. and you can run the risk… but NOT with other vehicles upon the road.
You damage a 40, 60, 80k vehicle, and you will be in debt for the rest of your life… like HECS
You damage a 40, 60, 80k vehicle, and you will be in debt for the rest of your life… like HECS
Go over seas and you wont be in debt anymore….and come back in 10 years time or so when the debt is like forgotten or wiped clean….
Remind me of that when I write off your car/property.
You'll probably forget about that crash we had 10 years ago…
@Zachary: Whether I forget or not is not important, as long as the non at fault person ie. You forget, its all gucci. Not like you would have a problem by the sound of it.
They will still chase you.
A family friend got contacted for the NZ Uni fees…20yrs after they graduated and left NZ.
Most people won't want to uproot their entire life to save a few hundred dollars a year on insurance
Join the smart cookies that understand the risk/reward equation of not taking 3rd party insurance .
You don't have to do the maths to figure out which side is profiting from people who don't understand that equation :)Just out of curiosity, who profits when you crash you car into another - and you were responsible, when you then have to pay for that damage? Or is this just another equation?
Yup, 3rd party min, go with Bingle
No insurance?
Is OP prepared to lose every cent they have in thier name today today and into the foreseeable future?
What sort of totally uninformed question is this?My suggestion to OP is that if you ask this question you are obviously not aware of your moral and legal obligations, not just in Australia abut anywhere in the world and hence not fit to own a car in Australia….
Please stay off the road just use Uber mate.
I cant believe 3rd party insurance is even optional. It's literally encouraging people to avoid owning up to an accident that's their fault. If they can't afford a few hundred bucks for 3rd party, they're not going to be able to afford to fix or replace a car they crash into.
I understand that's it's a necessity now realizing the depth of various situations that a person can get into without insurance. However, being from a totally different country where things work very differently and probably getting a car for first time ever which is obviously not that expensive, certain times the mentality goes like "why get it when the things are going alright and will see what happens" since you're short on money already because you just got the car and trying to make the ends meet. A person certainly doesn't get the bigger picture unless you actually go through it or someone makes you understand, which was the whole point of this post.
will see what happens
That "See what happens" can make your life crappier and make you poorer, you only need to damage 1 new/lux car.
Like with anything in life, any decisions you make, you need to think further. Think about risk vs reward and the consequences, what could happen and are you able to cope with it.
Agreed and understood.
In some countries, it is mandatory to have a third party property insurance.
All over the EU they have exchange agreement. Anybody got a list of countries/ states who do not require 3rd pp? As a student consider your future, an insurer who keeps a good driving record also in your future country of residence may be beneficial. A 7k car is a bit of a basket case for comprehensife but compare quotes.
If you have to ask then you shouldn't be driving.
My wife hit a subaru at low speed on her scooter when we didn't have 3rd party property, cost me $3.5K. Don't be an idiot like me, learn from my expensive mistake.
I'm sure there must be thousands of people looking for answers whether they should get any kind of insurance or not and after reading this forum hopefully it changes their mind and gets them some perspective. It surely did for me.
Yeah mate, I work in travel insurance now and jesus the medical bills I have seen for what are seemingly run of the mill accidents but being overseas completely changes the cost to you. I think how I spent my 20's backpacking Europe and doing stupid crap without any cover at all. Just insure everything, go go go
You should do an AMA on here
Yeppppp
I completely understand and I see the same
My friend use to never pay for third party insurance. He caused an accident and that cost him 125 years worth of yearly premiums.
No brainer
from painful, bitter experience, do NOT drive uninsured. Get at least "3rd Party Property" insurance, better is '3rd Party Property, Fire and Theft".
Do NOT, repeat DO NOT drive "uninsured". Down that road lays a world of pain and financial hardship.
My point of no insurance risk/reward equation for those in Vic lockdown is more powerful than ever :) !
For cheap insurance, I was recently recommended Poncho - check it out and compare with Bingle/Woolies/Real. I myself haven't used it, since my current insurance runs out in Nov. But he rated it good.
I would advocate for comprehensive insurance, but third party is an absolute minimum.
Yes - buy 3rd party insurance, also most companies will allow monthly payments.
I get TPP. I bought my car new in 2018 for 40k. I've decided comprehensive isn't worth it. Japanese car - happy to just pay for repairs as needed, cheaper in the long run.
TPP is a must though, in my opinion. Cost of potential at-fault is unknown and uncapped.
As you have already stated you are getting 3rd party property insurance which is great! I am with Budget Direct for mine, $240 a year and I got a $40 woolworths gift card with it too! Definitely cheap options around. :)
Yep I got Budget Direct for my daughter $235 a year.
Had third party insurance.
Some idiot ran into the back of my car at a red-light.
Their fault.They didn't have insurance, had to take them to court to get the money to repair my car.
Took about 2 years, and not having a car on the road that whole time.
Not worth it. Get Comprehensive.
If you're worried about cost, just up your premium a little to take the initial sting out of the monthly / yearly.
Not worth it. Get Comprehensive.
This is poor advice. Comprehensive insurance doesn't scale well to low-value vehicles. I.e. you can find yourself paying the value of the car in premiums over just a few years. On the other hand, TPP is never worth not having.
I had RAC comprehensive insurance on $2k cars for several years. Now I am driving a $10k one so it sounds better.
The comp was cheap. Guess I was old even back then:)
The cost difference was around $140/y so it was a no brainer - wanted the convenience. Which I got when a drink driver rolled into me at the red lights. Just reported it to my own insurance, went to assess the damage the same day and my car was booked in for the following Friday.
I will never risk only third party.
Recent changes to company laws set the limit of waiting to 6 months. Some 3rd pp companies have a goodwill up to 5k for non isured at fault. Having said that they are also look at any detail and if they consider you contributed even only 1% it is going to be a pain. Say you were on the side of the road on the phone with engine running some insurance firms will pick on anything to reduce payout. In doubt buy comprehensive.
I dont get this post?
Surely you had third party insurance with every car?
What idiot would drive anything on the road without third party insurance?
Do you mean you now want to get fire and theft added to your insurance?
I know those idiots and I don't even qualify them as friend now
Why buy a car if you can GoGet?
Petrol, insurance, maintenance, registration and on road cost will be covered.
Because you have to get to the "pod" and return the car there.
Cant you get it from any Pod?
You have to return it to the same pod you picked it up from
From GoGet
You must return your car to its home location at the end of your booking.
If you are unable to return the vehicle back to the allocated pod, because another car is parked there >or some other obstruction, please SMS 0427 777 769 with the new location.
For someone that didn't have insurance for 16 years, at least get 3rd party. I only reason why I didnt get insured is I kept on getting performance grey import cars and I was a bit too young. I'm insured now since I have a normal family car. :P
No risk of a young person crashing a performance import, so no need to insure right?
I'm being sarcastic of course, it's too expensive to insure a performance car when you are young…. Which is precisely why it should be compulsory….. There's a reason why everyone drives a 950cc fiesta in the uk until they are 25 and have several years claim free on their own insurance (not parents) ….because it's too damned expensive to insure otherwise….. Which keeps young, inexperienced drivers out of performance cars.
Boring… Tell me about it…. But less chance of dying or destroying someone else's life or property
And you actually get taught how to drive 😁
theres risk in everything you do in life. I guess it was a calculated risk on my behalf since I rarely drive & only do so on weekends. grey import issue was the main set back, there was only one insurance company that would insure it but only when I was 35. Have to admit I was lucky. I did have 3 ppl hit into me, (minor damage). I was able to collect from other parties myself without issues, which is a surprise in itself. Now Im married and wife is an inexperienced driver, so wouldn't be caught without insurance now.
I was rear ended in my car and the other drive had no insurance. I had comprehensive and made a claim and was compensated for my loss. That was 5 years ago. Found out not long ago, that the insurance company is constantly taking his property and has court order to take money from his wages. They won't give up and it's worth just having it. The guy is lucky my car was only worth $12k, but for $200-300 a year, he could have saved himself a fortune
I know too many people who complain Insurances are out to get them and therefore, beyond help.
This is why I have comprehensive, and I glare at my SO and family to do the same :)