I have always had fully comprehensive insurance on my cars and bikes which were new or nearly new when purchased. Generally I kept them for 18 mothehs to 2 years before changing or selling them.
However, due to circumstances changing I have had my current car for 5 years now and still have fully comp ins...
The car is worth about £2,000(ish) at present. At what point should I consider reducing the level of insurance to 3rd party, fire & theft?
Any thoughts on this?
John R
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John
Get some quotes - you might find that TPFT is little cheaper than fully comp.
Strange but true! Do a site search and you'll dig up some threads which explore this in more detail.
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Personally, I'd leave it as fully comp - I read somewhere the other week that in an increasing number of cases TPFT and RTA only insurance is actually more expensive, or certainly no cheaper than fully comp, on the basis that, from the insurer's point of view, people who won't pay for fully comp are the sort of people who will be careless enough to have a bump, or have such a God-awful claims record that no-one will give them fully comp.
Whether or not this is true I don't know - perhaps someone with an insurance industry background could elaborate further.
Think it depends really on whether you want to take the risk of bearing the loss yourself if you were unlucky enough to clang it.
I had a little incident with a kerb in July and had I not had fully comp insurance I would have had to sell the car to pay for the repairs.
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The quote for my car (mx5) was the same for comp as TPFT.
However there was a huge difference for the big bike 90 tpo, 190 tpft and 295 for comp.
I've come to the conclusion that it's not worth claiming for anything less than 1000 quids worth of damage to your own vehicle because of excess's, ncb and premium loading. (I have three policies)
Martin
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Get the quotes for both the fully comp and third party from somewhere like insuresupermarket.com. Work out the difference in premium and then work out how many years you would have to remain claim free to cover the £2000(minus the excess). Only you will know if this is a risk you are willing to take. £2000 is still quite a lot to loose in a one-er though. I'd be happier waiting until it was under a grand.
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If you were 22, I'd say go TPF&T now.
Of course, if it's a choice between paying £220 comp and £200 tpf&t, maybe only being able to get an extension for other cars with the comp premium, then probably the right answer is never.
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The answer basically depends on the extra cost of fully comp insurance as opposed to TPFT.
My Xantia that I've just sold was always fully comp, even though I realised it was only worth about £600 when I sold it.
If come next renewal, I could have saved £160 on a £333 premium, and felt that the car was worth around £500 to £600, I suspect I would have gone TPFT, bearing in mind the £100 excess my sinsurance comes up with.
In the unlikely event I had a fault accident with it I would be £600 - £100 - £160 worse off
ie £340 worse off
Since I would save this over the next two years anyway??
Hugo
"Forever indebted to experience of others"
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The DOC extension and the level of AD cover are not neccessarily related.
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An article in the D.Telegraph recently explained why for most drivers, TPF&T is usually more expensive than comprehensive!!
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